CBAM: New regulation against carbon intensive production kicks off soon
The Carbon Border Adjustment Mechanism, which came into force in May this year, will enter its transitional phase on 1 October 2023. There is a lot of news for companies in terms of the carbon emission conditions that will need to be met in the coming months and years. This article provides an overview of some of the key elements.
The CBAM is designed to support the decarbonisation of EU industry by aligning its gradual introduction with the phasing out of free allowances under the EU Emissions Trading System (ETS). Designed to put a fair price on the carbon emitted in the production of carbon-intensive goods entering the EU and to encourage cleaner industrial production in non-EU countries, the CBAM will ensure that the carbon price of imports is equivalent to the carbon price of domestic production.
The transitional phase
The CBAM will enter into force on 1 October 2023 in its transitional phase as a pilot and learning period for all stakeholders, in order to collect information on embedded emissions and to re