CBAM [draft] Implementing Regulation - comment now!
The European Commission has opened it public consultation on a draft implementing regulation for reporting requirements under CBAM in the transitional period. Feedback can be submitted until 11 July!
What does this implementing act do?
The CBAM will rely on importers declaring information about (inter alia) quantities of goods imported and embedded emissions.
Between 1 October 2023 and 1 January 2026, only some of the CBAM rules apply - the obligations of the importer/indirect customs representative are limited to the reporting obligations set out in Articles 33, 34 and 35 CBAM.
This [draft] Commission implementing regulation lays down the rules for those reporting requirements.
Scope of reporting requirements: quantities of imports, embedded emissions, carbon price effectively paid abroad
Provisional methodology for calculating embedded emissions (with flexibilities)
Administration: Details on the CBAM Transitional Registry
The initial sectors covered are cement, fertilisers, iron & steel, electricity, aluminium, hydrogen. One objective is to collect data for the purpose of further specifying the methodology for calculating embedded indirect emissions.
Why should I comment?
When the Commission runs public consultations on prospective legislation this is the opportunity for stakeholders (industry/governments/national implementing authorities/civil society etc) to provide feedback (the more concrete the better);
This is not the last chance to comment on CBAM before it becomes fully operational: A review of the CBAM's functioning during its transitional phase will be concluded before the entry into force of the definitive system (see Article 30 CBAM) BUT it is an excellent opportunity to shape the reporting system in the transitional period.
A summary of the feedback is collated and discussed by the relevant Committee.
Why do we only have until July?
This is an implementing act and so it is open for feedback for a period of four weeks.
The transitional phase starts in October and the implementing regulation needs to be in place.
A meaningful consultation implies time to collate, discuss and take in to account the feedback received.
When will CBAM apply?
The CBAM Regulation officially entered into force the day following its publication in the Official Journal of the EU on 16 May 2023.
Application will start for the transitional phase on 1 October 2023. The permanent system enters into force on 1 January 2026
The implementing regulation will enter in to force the day after its published and will apply from the date of application (so also 1 October 2023)
