CBAM - The EU Carbon Border Adjustment Mechanism
In a world increasingly focused on reducing CO2 emissions, the European Union has taken a further step towards a climate-friendly future with the introduction of the Carbon Border Adjustment Mechanism (CBAM). As part of the EU Green Deal, which aims to make the economy more sustainable, the CBAM is intended to create a mechanism to prevent market distortions. For companies that import certain emission-intensive products into the EU, this new regulation will bring significant changes.
What does CBAM mean for companies?
CBAM stands for "Carbon Border Adjustment Mechanism" and is a CO2 border adjustment system. This is intended to counteract a shift of CO2 emissions to non-EU countries (carbon leakage) with lower CO2 standards. Since October 2023, CBAM has been in a transition phase in which companies must prepare for more comprehensive obligations by 2034.
Who is affected by the CBAM reporting obligation?
The CBAM reporting obligation affects commercial and industrial companies that import the following products into the European Union
- Hydrogen
- fertilizers
- aluminum
- Iron and steel
- cement
- Electricity
The CBAM reporting obligation will initially focus on the above-mentioned products, as they cause an extremely high level of CO2 emissions during production. Other products are likely to follow.
Is there one CBAM reporting template?
There is no "one" CBAM report template in the form of a document. The emission data is entered directly via the customs portal (helpful links and report templates can be found here). The DEHSt (German Emissions Trading Authority) has been appointed as the competent authority for Germany. This authority is responsible for the implementation of European emissions trading in Germany, among other things.
Timing and report template:
