Carbon Border Adjustment Mechanism (CBAM)
Starting from 1 October 2023 designated imported goods from outside the EU will fall under new European regulations: the Carbon Border Adjustment Mechanism (CBAM). CBAM will be gradually implemented. From 1 October 2023, you will need to report on these goods, and from 1 January 2026, there will be a registration and payment obligation. This page provides you with more information on this matter.
What is CBAM?
CBAM is a price adjustment applied to imports into the EU for designated goods based on their CO2 emissions in the production process outside the EU. In Annex I of Regulation (EU) 2023/956, you can find the list of goods covered by CBAM (CBAM goods). You can access this list by searching 'CBAM' on eur-lex.europa.eu/.
The price adjustment is made through mandatory payments in the form of certificate purchases. In addition, the CBAM requires importers of CBAM goods to register and report on the CO2 emissions associated with the production of those goods.
Why CBAM?
CBAM is a European regulation and part of the 'Fit for 55' package. The goal of this package is to reduce greenhouse gas emissions by at least 55% by 2030. Currently, the EU operates a system where producers within the EU have to purchase emission allowances for the CO2 emissions of their products (EU Emissions Trading System, EU ETS). The price adjustment of CBAM ensures that these producers no longer face a competitive disadvantage when importing from third countries with lower climate standards.
Who does CBAM apply to?
CBAM applies to importers of CBAM goods. You can access the list of CBAM goods by searching 'CBAM' on eur-lex.europa.eu/.
The regulation says importer means either the person lodging a customs declaration for release for free circulation of goods in its own name and on its own behalf or, where the customs declaration is lodged by an indirect customs representative in accordance with Article 18 of Regulation (EU) No 952/2013, the person on whose behalf such a declaration is lodged.
What changes from 1 October 2023?
From 1 October 2023, importers of CBAM goods will be required to report to the European Commission on the amount of CO2 emitted during the production of CBAM goods outside the EU on a quarterly basis. This report must be submitted no later than one month after the end of each quarter. Article 35 of the regulation specifies what information you must include in the report.
We recommend that you assess whether you plan to import CBAM goods this year, even though the reporting procedure will be clarified later. If such imports are scheduled after 1 October 2023, we suggest conducting an inventory of the CO2 emissions associated with these goods together with your non-EU producer(s).
What changes after a 1 January 2026?
From 1 January 2026, as an importer of CBAM goods, you will be required to register with the national CBAM authority. You can already apply for CBAM registration from 1 January 2025.
Additionally, starting from 1 January 2026, you will be obligated to pay for the CO2 emissions generated in the production of CBAM goods outside the EU. This payment will be in the form of purchasing CO2 certificates from the national CBAM authority.
Where can you find more information about CBAM?
The details regarding CBAM are still being developed. It is not yet clear how to submit the quarterly reports to the European Commission starting from 1 October 2023. Nationally, the organisation(s) responsible for carrying out the tasks of the CBAM authority have not been determined. We will keep you informed through further correspondence as soon as more details become available. In the meantime, you can find up-to-date information on douane.nl/customs and on the website of the European Commission.