The EU Carbon Border Adjustment Mechanism (“CBAM”) after the trilogue
In December 2022, the European Parliament and the Council of the European Union reached an agreement on the EU carbon border adjustment mechanism (CBAM) that will put a price on carbon embedded in some imported products. The text of the agreed CBAM Regulation, pending formal adoption by both institutions, is now publicly available. Our client alert below explains the key features of the CBAM.
With only a few months left before the start of the transitional period on 1 October 2023, foreign producers and importers of the CBAM products should now get ready to meet the reporting obligations and face the future financial burden under the CBAM.