The European Commission recently launched the consultation phase on two essential draft regulations to strengthen the EU Carbon Border Adjustment Mechanism (CBAM) regulation’s operational structure. These include the draft Implementing Regulation for Authorized Declarants and creating a comprehensive CBAM registry. Stakeholders can submit feedback until November 28, 2024. These regulations clarify key aspects of the definitive CBAM implementation, set to begin on January 1, 2026.
Starting January 1, 2026, all importers of goods within the CBAM scope must qualify as Authorized CBAM Declarants. This therefore includes importers of cement, iron and steel, aluminum, fertilizers, electricity, hydrogen, and certain downstream products. Importers who do not obtain Authorized CBAM Declarant status will indeed be prohibited from importing CBAM products into the EU.
The draft Implementing Regulation basically introduces a structured framework for applying to become an Authorized CBAM Declarant. Key highlights include:
The draft implementing regulation on the CBAM Registry proposes a centralized, secure electronic system to support CBAM reporting and verification processes. Key features include:
These developments will have substantial implications for EU importers and exporters within the CBAM framework. EU importers must secure Authorized Declarant status and comply with strict regulatory standards to continue to import CBAM-scope products. For exporters, understanding and aligning with CBAM requirements will be essential to maintain access to the EU market. Compliance with these new mechanisms will be crucial for businesses looking to trade within the EU’s evolving regulatory landscape.
Stay tuned to our CBAM Navigator. We anticipate the immanent release of the draft implementing regulation on CBAM verification. Our team will soon provide a preliminary analysis on the potential expansion of goods under CBAM’s scope.
