The CBAM quarterly reporting period for the April to June 2024 quarter ends on 31 July 2024.
The CBAM or Carbon Border Adjustment Mechanism is a measure adopted by the European Union to reduce greenhouse gas emissions. It applies to goods produced in third countries and imported into the EU, especially those whose production is carbon intensive and present a higher risk of carbon leakage. The main objective of the CBAM is to equalise the carbon price between EU and imported goods, thus ensuring that the EU’s climate targets are met. The products initially affected are cement, iron and steel, aluminium, fertilisers, hydrogen and electricity.
During the transitional period, which runs from 1 October 2023 to 31 December 2025, importers must report the greenhouse gas emissions implied by imported goods on a quarterly basis. From 1 January 2026, when the permanent system enters into force, importers will have to report annually the quantity of imported goods and associated emissions. To calculate direct emissions, the amount of CO2 emitted per unit of product is considered as tonnes of CO2 per MWh of electricity or per tonne of goods. Indirect emissions are calculated according to the method established by the CBAM Regulation (actual or values published by the Commission). The price of CBAM certificates will be calculated as the average of the closing prices of greenhouse gas emission allowances in the European Union for each calendar week. This system is designed to be compatible with World Trade Organisation rules and to ensure that the carbon price of imports is equivalent to the carbon price of production in the EU.
Regarding the goods affected, a list can be found in Regulation (EU) 2023/956 https://eur-lex.europa.eu/eli/reg/2023/956/oj en los anexos I y II (pages 40 – 46).
Once it has been analysed and confirmed that it affects our international purchases, to use the CBAM (Border Carbon Adjustment Mechanism) duties as an importer, the following steps must be followed:
- Register as an Authorised Importer: you must register for this purpose. This involves complying with the requirements and procedures established by the EU.
- Declaration of Imports: Every year, you are obliged to declare the quantity of goods you import into the EU customs territory. This declaration will include information on the greenhouse gas emissions embodied in those products.
- Calculation of CBAM duties: The CBAM is based on the carbon price. You need to calculate the CBAM duties applicable to your imports according to the established rates.
- Payment of Allowances: Make the corresponding payment for the CBAM allowances. This ensures that your imports comply with the regulations and do not undermine the EU’s climate targets.
Bestway is ready to guide and support you in the CBAM reporting process. Please contact us.
*This article has been automatically translated from its Spanish version.
