European Carbon Border Adjustment Mechanism (CBAM) – Initial Scope

The European Council is continually giving the affected community more information on how to manage the new obligations coming forth out of Regulation 2023/956.

Guidance

Last week the European Commission published some more documents on guidance how to comply with the new obligations coming forth out of Regulation 2023/956. My colleague Celine already wrote an article on that publication and it’s available to read here.

At Pincvision, all these upcoming changes and obligations have our full attention. Hence why our experts went through the guidance documents and delved deeper into the impact of CBAM on your business.

The question on top of the list: what is in scope and who will be affected?

Scoping

The first six sectors to fall into scope of the CBAM are:

  • Cement
  • Electricity
  • Fertilizers
  • Iron and Steel
  • Aluminum
  • Hydrogen

These six have been selected due to producing significant greenhouse gas emissions, due to trade intensity and due to the risk these sectors pose that carbon costs could lead businesses to move their operations to countries with less stringent carbon pricing mechanism.

By including these sectors in CBAM, the EU aims to encourage cleaner production methods both within and outside of the EU.

Actual products within scope

For actual products in scope, there are Annexes included with Regulation 2023/956 (to be found here)

Annex I & II contain HTS codes of products in scope as well as a description of goods for which a declaration will have to be done in the very near future.
It is mostly construction-related and not finished goods: for example, screws and bolts are in scope, but (in IT sector popular) items like server cases (currently) are not.

The transition period of CBAM starts in October 2023. Are you ready? Pincvision will surely stay on top of new developments and help customers wherever they can in order to be compliant with such new legislation!

Pincvision for your Environmental compliance obligations

You can reach out to us in case you have any questions regarding Environmental compliance. We will keep you informed about the development regarding environmental obligations and enforcement, or completely other topics which will be mentioned in our newsletter.

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Source: European Commission

29 Aug 2023 at 9:51 am
2 min
Published by:
Joris te Pas
Environmental Compliance Specialist
Extended Producer Responsibility
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