What is CBAM?

CBAM (Carbon Border Adjustment Mechanism) is a regulatory mechanism introduced by the European Union that takes into account carbon emissions. This mechanism responds to the regulatory need to reduce industrial emissions. In practice, the CBAM means that importers of products covered by the mechanism must report the amount of greenhouse gas emissions attributable to imported products and, if applicable, pay a corresponding levy. Reportable products: steel, iron, cement, fertilisers, aluminium and electricity.

What changed after 31 July?

From this date, importers can no longer use the EC’s default emission values. Now importers of CBAM goods within the European Union are required to report emissions at actual values. This requires importers to carefully analyse all participants in the supply chain in order to obtain reliable data from them to determine emissions. 

Consequences of non-reporting

Failure to comply with the new CBAM requirements can have serious consequences for companies. First and foremost, importers who fail to submit the required emissions reports may face hefty fines ranging from €10 to €50 per tonne of emissions. In addition, they may face administrative fines of up to PLN 50,000 for failing to submit CBAM declarations. Failure to comply with CBAM can also lead to delays in customs clearance, which in turn can disrupt the supply chain and adversely affect the company’s operations. In extreme cases, it can also result in the loss of the ability to import into the European Union.

Our support includes, but is not limited to: 

• Determining which products are subject to the CBAM obligation by preparing a summary of the products subject to the reporting obligation.
• Analysis of CBAM obligations for importers, including a summary of the requirements for importing goods into the European Union.
• Identification of data required from importers and suppliers based on analysis of documents provided by customers.
• Provide a detailed summary of reporting requirements, including identification of data required to prepare reports.
• Preparation of CBAM records that meet the formal requirements of the Commission Implementing Regulation (EU) 2023/1773 of 17 August 2023.
• CBAM reporting, including preparation of CBAM declarations.
• Assistance in dealing with CBAM reporting errors.

Working with us gives you peace of mind that you are meeting all CBAM requirements, minimising the risk of penalties and streamlining your emissions reporting and record keeping processes.