When certain goods are imported into the EU from third countries, a CO2 levy will be due in future. We are talking about the CBAM ("Carbon Border Adjustment Mechanism"). The CBAM imposes a CO2 price on EU imports of goods from emission-intensive sectors of the economy. Imports from the iron and steel, aluminium, fertiliser, cement, hydrogen and electricity sectors are affected. Other goods to which CBAM applies will follow. CBAM is a mechanism of the European Union to achieve the European climate targets.
Regulation (EU) No. 2023/956 establishing the Carbon Border Adjustment Mechanism (CBAM Regulation) was published in the Official Journal of the EU on 16 May 2023. It has been in force since 1 October 2023.
This means that the EU is introducing further administrative and financial burdens for the import of certain goods, in addition to the existing customs requirements. This results in additional work and costs for importing companies. Furthermore, the entire supply chain is affected.
The first reporting obligations have been in place since October 2023 with the start of the transition phase. For example, the customs declarant or indirect customs representative is required to submit a quarterly CBAM report with (actual) emission data for the goods imported during that quarter.
From 1 January 2026, the CBAM will enter its regular phase – with direct financial implications for importing companies. For goods affected and imported from this date onwards, CBAM certificates must be purchased annually and surrendered from 2027 onwards to offset the emissions generated during production. This will make CO₂ costs a real and planning-relevant factor. There are also other obligations that economic operators must comply with during the regular phase. These include, among other things, annual reporting or, where applicable, verification of emissions data.
Furthermore, from 1 January 2026, only so-called authorised CBAM registrants will be allowed to import goods affected by the CBAM Regulation. Failure to obtain this status will result in an import ban on the goods concerned and additional sanctions.
Through the so-called Omnibus Initiative, the EU has now made further significant adjustments to the legal framework. However, in addition to the planned simplifications, companies must prepare for new reporting requirements, stricter testing and control processes, and increasing financial burdens from 2026 onwards. Further implementing regulations from the European Commission are in the pipeline.
In order to implement the CBAM and enter the regulatory phase, the necessary structures must be created as quickly as possible within the company and among suppliers abroad, if this has not already been done. Otherwise, there is a risk of significant penalties. The national authority has already begun to enforce reporting requirements during the transition phase. Sanction proceedings can result in fines and/or jeopardise (initial) approval as an authorised CBAM registrant.
If you have any questions about the requirements that CBAM will place on companies in the future, the AWB will be happy to advise you.
