The mechanism for imports of goods to the EU puts a price on the carbon emitted during production. CBAM is meant to support the EU’s increased action for climate mitigation while ensuring World Trade Organisation compatibility.
In the transitional phase of the implementation of the CBAM, from October 1 of this year to December 31, 2025, companies that export to the EU are subject to a reporting obligation without financial obligations.
During this period, importers must determine and document direct and indirect emissions that occur in the course of the production process of their goods exported to the EU. This step alone is likely to pose challenges for many companies, as necessary IT solutions for recording and determining carbon dioxide equivalent emissions are often lacking, according to Auramon Supthaweethum, director-general of the Department of Trade Negotiations.
He made…
