A new year will soon be here, and the implementation of the carbon border adjustment mechanism (CBAM) is proceeding rapidly. The transitional period for the mechanism has already begun and at Customs, we are preparing for the beginning of the reporting period. The strict reporting obligations for emissions data create significant challenges for operators. The transitional flexibilities introduced by the Commission provide some relief and are available, particularly at the beginning of the transitional period.
FLEXIBILITY 1: Emissions data
During the transitional period, importers of CBAM goods are obliged to report on the emissions generated in the manufacture of the goods they import (see exemptions on the CBAM page and in the Regulation). Receiving these emissions data from the manufacturers of the goods, can be particularly challenging.
In the beginning of the transitional period (the three initial reporting periods, i.e. until 30 June 2024), you can use the default values published by the Commission as emissions data. In other words, if you have not received emissions data from the manufacturer of the goods, you can use these default values directly. They will allow you make a report via the Commission’s CBAM transitional registry, even if the supplier of the goods have informed you that they cannot yet provide emissions data for those reporting periods.
The Commission publishes the default values on its website.
As for the end of the year (i.e. until 31 December 2024), you can use one of the following three options as emissions data:
- The carbon pricing system to be observed at the installation’s location.
- The mandatory carbon emissions monitoring system to be observed at the installation’s location.
- The emission monitoring system to be observed by the installation, which may include verification by an accredited verifier.
However, this is subject to the condition that the option achieves the same coverage and accuracy of emissions data as the methods specified in the CBAM legislation. Therefore, the use of these options already requires more work and background checks than the “flexibility” of the first three reporting periods.
If you cannot use one of these options, the emissions data must be declared without “flexibility” per installation and defined in accordance with the CBAM legislation. Determining and reporting emissions data is strictly regulated in legislation. However, verification is not required at this stage; rather the verification system will not be introduced until 1 January 2026.
FLEXIBILITY 2: Subsequent correction of the report
Once you have submitted the report to the transitional registry, you can subsequently correct it with your own notification. You can do it in the register, where corrections are also made. You can correct reports from the first three reporting periods until 31 July 2024. This requires that you have submitted the report within the original time limit.
At a later stage of the transitional period, you can correct the report within two months of the end of the reporting period. Your own notification in the transitional registry is sufficient also at this stage. It requires in this case also that you have submitted the report to the registry within the time limit.
If you later notice, for example that the report you have submitted contains errors, or if the manufacturer of the goods has provided you with corrected emissions data, you can apply for consent to correct the report subsequently. The application (with sufficient explanation) can be submitted to Customs within one year of the end of the reporting period. Customs will make a decision in the matter and after this; the corrections must be made in the transitional registry within one month.
Customs provides information on the carbon border adjustment mechanism. If you have question regarding the transitional period, you can for example send us an email to the address cbam@tulli.fi. Make sure you remember to subscribe to our CBAM newsletter and our customer bulletins.
- Jussi Törmänen
The writer works as a lawyer on the Customs CBAM team.
Key concepts:
- Reporting period
Quarter. For example, the first reporting period is 1 October - 31 December 2023, for which the report is submitted no later than 31 January 2024.
- Transitional period
1 October 2023 - 31 December 2025. At this stage, CBAM certificates are not yet purchased.
- Transitional period report
Report to be submitted via the Commission’s transitional registry, where you enter the CBAM goods you have imported during the reporting period, direct and indirect goods emissions from the manufacturing, carbon costs possibly paid in the country of origin and the resulting compensations.
The report must be submitted via the registry within one month from the end of the reporting period.
- Transitional registry
Registry of the Commission, where reports of the transitional period are submitted. Don’t submit data (e.g. an Excel table) directly to Customs, rather the data should be submitted via the Commission’s registry.
- Applicable legislation during the transitional period
Regulation (EU) 2023/956 of the European Parliament and of the Council establishing a carbon border adjustment mechanism
Regulation (EU) 2023/956 of the European Parliament and of the Council laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period.
