All companies importing carbon products from non-EU countries are likely to be affected by the Carbon Border Management Mechanism (CBAM) and must register as a declarant for CBAM purposes. From October 2023, importers/declarants of these goods in the EU will have to fulfill certain obligations in accordance with the CBAM regulation.

CBAM is one of the key elements of the European Union’s “Fit for 55” package and will contribute to the EU’s ambitious target of reducing carbon emissions by 55% compared to 1990 levels by 2030 and becoming a climate-neutral continent by 2050. Its aim is to , to prevent the EU’s efforts to reduce emissions from being diluted by increased emissions outside the Union, which would be caused by the relocation of production to countries outside the EU or increased imports of products that generate high carbon dioxide emissions. .

Essentially, the CBAM will be a tax that will be applied to imports of products that generate high carbon emissions from outside the European Union.

What is the purpose of the CBAM Regulation?

CBAM aims to address the risks of carbon leakage by introducing an import tax on sectors that generate high carbon emissions, equivalent to carbon pricing for locally produced goods (i.e. the EU Emissions Trading Scheme).

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The article was signed by Ana Maria Iordake, partner of D&B David si Baias and Lyudmila Petrescu, senior manager of PwC Romania

Article supported by PwC Romania