The European Commission recently published the default values and the imposition of reduced penalties in the context of the transitional phase of the Carbon Border Adjustment Mechanism (CBAM) and the adoption of guidelines to streamline reporting activities. Those tools aim to facilitate the gradual and proper implementation of the CBAM mechanism.
During the transitional period, EU-based importers of goods covered by CBAM from non-EU countries are obligated to report the embedded emissions of their imports without incurring any financial liabilities. Entities within the scope should view this transitional period as an opportunity to familiarize themselves with the new system and develop an appropriate compliance strategy.
Full details of the obligations and CBAM transitional period are covered in our alert.
