The Regulation on the Carbon Border Adjustment Mechanism entered into force on 17 May 2023
The European Parliament and the Council of the European Union have accepted the Regulation on the Carbon Border Adjustment Mechanism. The Regulation was published in the Official Journal of the European Union on 16 May 2023 and entered into force on 17 May 2023.
An Implementing Regulation on practices during the transition period is being prepared and is expected to be published during the summer. The transition period starts on 1 October 2023 and ends on 31 December 2025.
In addition to the EU regulations, the national legislation is being prepared and it is meant to enter into force at the start of 2024.
The Carbon Border Adjustment Mechanism (CBAM) is a new instrument of the EU for preventing carbon leakage, that is, release of emissions to regions outside the EU. For importers, this means new obligations.