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Carbon border adjustment mechanism

10/1/2023

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Last 14th July 2021, the European Commission (hereinafter EC) presented a proposal for a Regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism (hereinafter, CBAM), with which it is intended to match  the carbon price paid for EU products operating under the EU ETS and for imported products. This will only be possible by forcing companies importing into the EU to buy so-called CBAM certificates, in order to pay for the difference between the carbon price paid in the country of production and the carbon price in the EU ETS. 

The proposal for a Regulation outlines a decentralised approach delegating certain essential functions and their implementation to the Member States' authorities, subject in any case to supervision and coordination by the European authorities. Thus, this Regulation establishes general guidelines, which are being negotiated by the Member States.
 
In the meetings held during the week of 13 to 18 December 2022, MS approved an Interim Agreement with the Council to create the CBAM, which states that it will enter into force from 1 October 2023. To know more about this topic please click on the following link.
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    Belén Palao Bastardés

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