What is CBAM and how does it affect business?

CBAM, also called carbon border tax, is a mechanism of additional fees for goods imported into the EU, taking into account CO2 emissions. It concerns, among others: iron, steel or aluminum products and artificial fertilizers. Currently, this tool is in a transitional period and companies are required to report the carbon footprint of imported products. The mandatory fees will come into force at the beginning of 2026. At SUUS, we provide comprehensive service for goods covered by this mechanism.

Under CBAM (Carbon Border Adjustment Mechanism), importers are required to purchase certificates whose value corresponds to those in the European Emissions Trading System (EU ETS), minus any environmental fees paid in the country of production. This mechanism applies to goods from non-EU countries not covered by EU ETS, excluding Iceland, Liechtenstein, Norway, and Switzerland.

CBAM aims to reduce CO₂ emissions by at least 55% by 2030. The fees for CBAM certificates are designed to create a level playing field between EU producers, who incur internal climate policy costs, and importers of goods from outside the EU. CBAM was introduced by Regulation (EU) of the European Parliament and Council as part of the Fit for 55 package.

Implementation Stages

The system will become fully operational on January 1, 2026, but a transitional phase began on October 1, 2023. During this phase, importers must report the CO₂ emissions of regulated goods. Companies wishing to submit reports must obtain CBAM notifier status.

What Goods Are Covered?

CBAM applies to raw materials and semi-finished products with high greenhouse gas emissions, including:

• Cement
• Iron and steel
• Aluminum
• Artificial fertilizers
• Hydrogen
• Electricity

Reporting Requirements

Reports must include:

• Quantity of goods (in tons or MWh)
• Embedded emissions (tonnes of CO₂ equivalent)
• CN code classification of goods
• Country of origin
• Total indirect emissions
• Carbon tax data in the country of origin

Reports are submitted quarterly. For example, reports for Q1 2024 are due by the end of April 2024. For detailed guidelines and necessary documents, visit the European Commission website.

How can SUUS help?

At SUUS, we offer comprehensive CBAM support, including reporting, expert guidance, and advisory services. Contact us for tailored solutions.