Since 2023, the European Union has implemented the Carbon Border Adjustment Mechanism (CBAM), aiming to reduce carbon leakage by taxing CO2 emissions associated with imported goods. Below, you can see how CBAM relates to your imports in Greece.
What is CBAM?
The CBAM (Carbon Border Adjustment Mechanism) is a CO2 taxation mechanism by the EU, designed to support decarbonization strategies and combat carbon leakage.
Which products are affected?
CBAM primarily targets products with high carbon emissions, such as:
- Iron and Steel
- Cement
- Fertilizers
- Aluminum
- Electricity
- Hydrogen
Phases and Timeline Transitional
Phase (October 1, 2023 – December 31, 2025) :
During this phase, importers of the above products must be aware of and submit a quarterly report on the “Product Carbon Footprint” (PCF) of the products they import.
The PCF includes both direct and indirect emissions that have emerged from the product’s supply chain, based on international standards such as ISO 14064. Contact us to help you calculate the carbon footprint of the products you import and prepare your report..
Τransitional Phase Deadlines and Requirements:
- The deadline for submitting the report is one month after the end of each quarter. For example, the report for the first quarter of 2024 must be submitted by the end of April 2024.
- IMPORTANT: During the transitional period of CBAM, importers have no financial obligation.
- From December 31, 2024, importers can apply to be recognized as authorized CBAM declarants and gain an account in the Pan-European CBAM registry.
- IMPORTANT: After the full implementation date of the regulation, Customs Authorities will allow the import of goods from third countries only to licensed CBAM declarants.
Full Implementation (from January 1, 2026):
From January 1, 2026, the implementation of CBAM will change the landscape for imports into the European Union. Importers will need to purchase CBAM certificates, which will correspond to the CO2 emissions of the imported products, with their prices based on the average price of emissions rights in the EU ETS (European Union Emissions Trading System).
Importers will then need to:
- Submit a declaration of the total emissions of the imported products based on verified data.
- Purchase and submit the necessary CBAM certificates covering these emissions.
- Regularly verify the emissions through approved independent entities.
Customs Authorities will allow the import of goods only if all the above procedures are followed. Adapting to this new framework requires precise planning and strategic approach, something that KALAFATIS & CO is ready to offer you, ensuring a smooth transition and compliance with the new requirements.
Why Does It Matter to You?
The implementation of CBAM represents a significant change in the EU’s environmental policy, affecting all businesses involved in international trade. Preparing for these changes is crucial, as they impact many aspects of your business activity such as regulatory compliance, communication with suppliers, and pricing policy. Timely integration of the new requirements into your processes can provide a competitive advantage to your company.
How Can We Help You?
At KALAFATIS & CO, we are ready to guide you in relation to the new EU regulations. From informing you about the latest developments to registering and managing your account on the CBAM EU TRADER PORTAL, our team is here to ensure your company’s smooth transition to the new requirements.
If you wish to stay informed about the new CBAM regulation and need assistance with your submissions/reporting on the,CBAM EU TRADER PORTAL , do not hesitate to contact us.
