Several changes to the CBAM (Carbon Border Adjustment Mechanism) will be introduced starting January 1, 2025

Author： Hits：20 Date：2024-12-07 source：

Several changes to the CBAM (Carbon Border Adjustment Mechanism) will be introduced starting January 1, 2025.

1. Reporting Requirements and Methodology

The Implementing Regulation on reporting requirements and methodology provides for some flexibility when it comes to the values used to calculate embedded emissions on imports during the transitional phase. Until the end of 2024, companies will have the choice of reporting in three ways: (a) full reporting according to the new methodology (EU method); (b) reporting based on an equivalent method (three options); and (c) reporting based on default reference values (only until July 2024).

With regards to the reporting, only the EU method will be accepted. For complex goods, estimates (including default values) can only be used if they account for less than 20% of the total embedded emissions. The Commission published default values on 22 December 2023. This report from the EU’s Joint Research Centre (JRC) fed into the preparation of those default values.

2. Data Upload by Non-EU Operators

Operators are required to report the embedded carbon emissions data of CBAM goods to EU importers responsible for fulfilling reporting obligations under the CBAM Regulation. Since goods may be sold to numerous customers, a large number of EU importers might request such information from operators. To ensure the efficiency of such communication, the European Commission has provided a standardized template for this purpose.

Although the use of this template is voluntary, it is important to emphasize that it greatly simplifies communication for both parties. Your customers may be located in different EU Member States, speak different languages, and purchase CBAM goods from multiple suppliers in various countries. The standardized template ensures consistency in the reporting format, allowing the same type of information to always be found in the same fields, with each field's meaning clearly defined.

Furthermore, a new portal section of the CBAM Registry will allow installation operators outside the EU to upload and share their installations and emissions data with reporting declarants in a streamlined manner, instead of submitting it to each declarant separately. The portal will allow operators to ensure the confidential treatment of business-sensitive data. Reporting declarants will then be able to automatically populate their CBAM reports with this emissions data in order to comply with their reporting obligation. Registration for installation operators will open from 1 January 2025.

The European Commission has released the Application User Manual CBAM Declarant Portal ver 1.3, which provides detailed instructions on how operators can register, deregister, and edit their account information in the CBAM Registry system.

The CBAM (Carbon Border Adjustment Mechanism) system also allows for the storage of information related to production facilities in third countries.