Carbon Border Adjustment Mechanism (CBAM) reporting and calculations
The Carbon Border Adjustment Mechanism (CBAM) is an innovative European Union (EU) measure designed to ensure compliance with carbon emissions regulations by importers of goods. This approach has been established under Regulation (EU) 2023/956 and 2023/1773 and is essential to address today’s environmental and climate challenges.
How does it work?
Importers subject to CBAM must collect information on their imports during the prescribed quarters to be reported in the quarterly report, together with the correspondingly calculated emissions.
Also, from 2026, importers will be required to purchase certificates reflecting the carbon cost they would have paid if the goods had been produced according to EU standards.
Products subject to the Regulation:
The CBAM will initially apply to imports of goods and precursors known for their high carbon intensity and increased risk of carbon leakage, and may gradually expand its scope.
In order to identify the products subject to CBAM, it is necessary to review Annex I of Regulation (EU) 2023/956 . Thus, during the transitional period, the products affected are cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
CBAM Implementation Schedule:
- Transitional period (01/10/2023 – 31/12/2025): During this period, importers must report greenhouse gas emissions caused by their imports, with no obligation to pay. Quarterly CBAM reports must be submitted. The first report is due by 31/01/2024 and the last by 31/01/2026.
- Definitive Period (01/01/2026 – 2034): In this period, emissions embodied in products subject to CBAM will be addressed through the purchase of CBAM certificates.Similarly, annual returns must be filed.
Obligations of the declarants:
Transitional period:
- Transitional registration CBAM
- Quarterly report CBAM
Final period:
- CBAM registration
- CBAM annual declaration
- Sale and Purchase of CBAM Certificates
- Delivery of CBAM Certificates
- Verification by external body
Services offered by Tandem HSE:
We offer comprehensive solutions to help your company comply with CBAM regulations and ensure your imports meet EU carbon emissions standards. Our services include:
- Expert advice: We provide you with expert advice on how to prepare for the CBAM regulations and how to comply with the requirements.
- CBAM platform registration: We provide assistance in registering to the official European Commission platform, designed to facilitate the mandatory documentation steps under the CBAM.
- Reporting and Documentation: We prepare detailed reports and documentation required to comply with CBAM obligations.
- Monitoring of Regulatory Changes: We keep your company abreast of any changes in CBAM regulations.