Adopted with Regulation (EU) 2023/956 and effective from October 1, 2023, the Carbon Border Adjustment Mechanism (CBAM) is a key tool of the EU Green Deal and specifically the Fit for 55 package. It also prevents unfair competition between EU and non-EU companies, positively impacting the competitiveness of the Union's industry.
The imminent modification of the mechanism as part of the broader simplification by the new EU Commission with the Omnibus Simplification Package was announced during the presentation of the EU Competitiveness Compass and recently confirmed by European Climate Commissioner Wopke Hoekstra. Potential adjustments to the CBAM could include simplifying emission reporting processes, extending the mechanism to other sectors, and exempting small businesses.
