Webinar: Carbon Border Adjustment Mechanism (CBAM)
We are pleased to invite you to join our webinar on the Carbon Border Adjustment Mechanism (“CBAM”). In the webinar, we will provide you with an update on recent developments, the current state of play and several takeaways.
This event has already taken place
Why is CBAM important?
The CBAM will put a carbon price on certain imported goods and will function in parallel with the EU Emissions Trading System (“EU ETS”) to ensure equivalent carbon pricing between imported goods and EU-produced goods. The CBAM will cover imports of iron and steel, cement, aluminium, fertilisers, electricity, hydrogen, certain precursors as well as some downstream products (e.g. screws and bolts). Companies active in importing these products into the EU are advised to timely evaluate the potential impact on their business model.
Which topics are covered?
The following attention points will – inter alia – be discussed in more detail during the webinar:
- On 1 October 2023, a transitional period will enter into force during which in-scope companies’ obligations will be limited to reporting.
- From 1 January 2026, in-scope companies will be required to purchase CBAM certificates to cover carbon emissions from the production of imported products as described above.
- It shall be assessed before the end of the transition period (i.e. 31 December 2025) whether the CBAM scope will be extended to other goods, such as organic chemicals and polymers.
- CBAM will be gradually phased in from 2026 until 2034, while the free allocation of allowances for CBAM sectors under the EU ETS will gradually be phased out. The CBAM will therefore be fully phased in by 2034.
- By 2030, the goal is to extend the CBAM scope to all product groups covered by the EU ETS (e.g. glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals).
- Both direct and indirect emissions (i.e. emissions regarding consumed electricity) will be covered by CBAM.
Please note that the CBAM was formally approved by both the EU Parliament and the Council in April 2023. For more background on the CBAM proposal, please refer to our website post.
For whom interesting
Companies active in importing the above-mentioned products into the EU.