The Carbon Border Adjustment Mechanism (CBAM) has commenced its transitional application period, marking a critical stage before the definitive implementation, set to kick off on 1 January 2026. Notably, from 1 October 2023 to 31 December 2025, importers of CBAM goods into the European Union will have to start sharing data on the embedded emissions of their imports. This data management takes place through the submission of reports via the CBAM Transitional Registry. The first such report is expected by 31 January 2024.
Changes are not only limited to reporting requirements. As of 31 December 2024, importers must also attain “authorized declarant” status to qualify for their operations under the CBAM regulations.
The transitional application period for CBAM serves as a ‘trial run’ period. It offers companies a vital opportunity to adapt to these new regulations, ensuring seamless operational continuation once the definitive application begins in 2026.
For more detailed insight, you can read the full article on this matter at JD Supra, curated by Hogan Lovells.