The Deadline for the First Reporting Period Under the Carbon Border Adjustment Mechanism

The European Union Regulation 2023/956 establishing a Carbon Border Adjustment Mechanism (CBAM) was published in the Official Journal of the European Union on 17.08.2023 and came into force on 01.10.2023. The CBAM creates obligations for importers resident in the European Union (EU).

Acting as a complement to the Emissions Trading System already in force in the EU, the CBAM applies to imports into the EU of certain goods and selected precursors, such as cement, iron and steel, aluminum, fertilizer, electricity, and hydrogen, whose production causes high carbon emissions and involves a high risk of carbon leakage.

A transitional period until 2026 is stipulated under the CBAM. Until 2026, only reporting obligations are in force. From 2026 onwards, the financial obligations envisaged by the CBAM will come into effect.

The first reporting period within the scope of the CBAM covers the period between 01.10.2023 - 31.12.2023 and importers must report their imports through the system established by the European Commission covering this period until 31.01.2024. Otherwise, the competent national authorities of the EU Member States in which they are resident will impose administrative fines.