CBAM introduces a tax on imports of certain goods. Initially, the commodities affected by CBAM will be limited to the aluminum, iron, fertilizer, steel, electricity and cement sectors. Goods coming from an EFTA country (according to EU rules of origin) are exempt from the CBAM. On January 1, 2023, the CBAM transition period will enter into force. From then on, imports of affected goods into the EU must be reported quarterly via the CBAM report. This report contains, among other things, the following information on the imported goods:
- Quantity imported
- Direct emissions
- Indirect emissions
- CO2 price abroad
From 2026, the transition period will end and EU importers will have to financially offset the direct and indirect emissions generated by the production of the imported goods by purchasing CBAM certificates.