According to recent press reports, the third interinstitutional meeting on the CO2 Border Price Adjustment Mechanism (CBAM) was held on November 8, 2022. The negotiations conducted with the participation of the President of the Czech Republic and the Directorate General for Taxation and Customs Union (DG TAXUD) suggest that there is a high probability that they will be completed before the end of 2022.
This means that no major delays in the implementation of the regulations should be expected. However a slight reporting delay during the transitional period is likely.
January 2023 will be a difficult deadline due to formalities and the fact that the European Parliament needs to be sure that the Commission and the Member States have enough time to prepare to face new tasks, but still possible.
What is the CO2 Border Adjustment Mechanism (CBAM)?
CBAM is a key element of the European Commission's "Fit for 55" legislative package, which aims to reduce net greenhouse gas emissions by at least 55% by 2030 from 1990 levels. CBAM aims to reduce carbon emissions by imposing charges for CO2 emissions (the so-called carbon tax) for high-emission products placed on the EU market. CBAM will cover many categories of goods:
- cement (selected products from CN chapter 2523),
- electricity (CN 2716 00 00),
- fertilizers (including CN chapter 2808, 2814, 2834, 3102, 3105 except CN 3105 60 00), goods in the steel industry, e.g. iron and steel, iron and steel pipes (selected products from CN chapter 72 and 73),
- aluminum (selected products from CN chapter 76),
- organic chemicals (CN chapter 29), hydrogen (CN 2804 10 000),
- anhydrous ammonia (CN 2814 10 000),
- ammonia in aqueous solution (CN 2814 20 00),
- plastics and articles made from them (Chapter CN 39).
The EU is introducing CBAM from January 1, 2023 for a four-year transition period, with full policy implementation from January 1, 2027. It is worth foreseeing that with the ordinance it will now be in its entirety, without the need to supplement city regulations.
Autorzy:
