The new Carbon Border Adjustment Mechanism (CBAM) legislation has officially been approved and published, giving the go ahead for the implementation of the first transitional phase from October.

During the first transitional phase, importers of steel products in Europe will need to implement a system to report to authorities imports on an annual basis – the first reporting period ends on 31 January 2024. The transitional phase will serve for all players as a preparation period and allow authorities to gather more information to be used in a report review for publishing before the definitive system begins in 2026. 

“During this period, importers of goods in the scope of the new rules will only have to report greenhouse gas emissions embedded in their imports (direct and indirect emissions), without making any financial payments or adjustments,” the European Commission explains.

The transitional phase will finish at the end of 2025; from the beginning of 2026, the permanent system will come into force.

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