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    CBAM Factsheet

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    kanglingfreedom
    The document discusses the EU's Carbon Border Adjustment Mechanism (CBAM) which aims to put a price on carbon emissions from imported goods to reduce carbon leakage. It will initially cover cement, iron & steel, aluminum, fertilizer, hydrogen and electricity. Starting in 2023 it will be in a transitional phase and fully implemented by 2026, requiring importers to buy certificates for the carbon emitted during production of imported goods.

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    © All Rights Reserved
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    CBAM Factsheet

    Uploaded by

    kanglingfreedom
    27 views2 pages
    The document discusses the EU's Carbon Border Adjustment Mechanism (CBAM) which aims to put a price on carbon emissions from imported goods to reduce carbon leakage. It will initially cover cement, iron & steel, aluminum, fertilizer, hydrogen and electricity. Starting in 2023 it will be in a transitional phase and fully implemented by 2026, requiring importers to buy certificates for the carbon emitted during production of imported goods.

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    20230510 CBAM factsheet

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    The document discusses the EU's Carbon Border Adjustment Mechanism (CBAM) which aims to put a price on carbon emissions from imported goods to reduce carbon leakage. It will initially cover cement, iron & steel, aluminum, fertilizer, hydrogen and electricity. Starting in 2023 it will be in a transitional phase and fully implemented by 2026, requiring importers to buy certificates for the carbon emitted during production of imported goods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views2 pages

    CBAM Factsheet

    Uploaded by

    kanglingfreedom
    The document discusses the EU's Carbon Border Adjustment Mechanism (CBAM) which aims to put a price on carbon emissions from imported goods to reduce carbon leakage. It will initially cover cement, iron & steel, aluminum, fertilizer, hydrogen and electricity. Starting in 2023 it will be in a transitional phase and fully implemented by 2026, requiring importers to buy certificates for the carbon emitted during production of imported goods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    10 May 2023

    CARBON BORDER

    As the EU raises its own climate ambition, but less stringent


    environmental and climate policies prevail in non-EU countries,
    there is a strong risk of so-called ‘carbon leakage’, which can shift
    emissions outside of Europe and seriously undermine EU and global
    climate efforts.

    That’s why the EU needs a new – green - mechanism for imports of goods
    from outside the EU: a system that puts a fair price on the carbon emitted
    during production, and that encourages cleaner industry in non-EU countries.

    Carbon leakage occurs when industries transfer polluting production to other


    countries with less stringent climate policies, or when EU products are replaced by
    more carbon-intensive imports.

    In its first phase, the CBAM will focus on goods most at risk of carbon leakage:

    1 2 3 4 5 6

    CEMENT IRON & STEEL ALUMINIUM FERTILISER HYDROGEN ELECTRICITY


    HOW WILL THE CBAM WORK?
    under the final Regulation, the CBAM will enter into application in its transitional phase on 1
    October 2023. To facilitate a smooth roll out, no financial adjustment will have to be made by
    EU importers during this time.

    Once fully in place as of 2026, the CBAM will work as follows:

    EU importers of goods covered by the CBAM will need to buy CBAM certificates. The
    price of the certificates will be calculated depending on the weekly average auction
    price of EU ETS allowances expressed in € / tonne of CO2 emitted.

    The EU importer must declare by 31 May each year the quantity of goods and the
    embedded emissions in those goods imported into the EU in the preceding year.
    At the same time, the importer surrenders the number of CBAM certificates that
    corresponds to the amount of greenhouse gas emissions embedded in the products.

    If importers can prove, based on verified information from third country producers,
    that a carbon price has already been paid during the production of the imported
    goods, the corresponding amount can be deducted from their final bill.

    © European Union, 2021


    Reuse of this document is allowed, provided appropriate credit is given and any changes are indicated
    (Creative Commons Attribution 4.0 International license). For any use or reproduction of elements that are
    not owned by the EU, permission may need to be sought directly from the respective right holders.
    All images © European Union, unless otherwise stated.

    PDF ISBN 978-92-76-40244-2 doi:10.2778/584899 KP-05-21-215-EN-N

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