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CBAM: what needs to be reported by reporting declarants
During the transitional period, importers need to report on a quarterly basis the embedded emissions in goods imported during that quarter of a calendar year, detailing direct and indirect emissions as well as any carbon price effectively due abroad. The following information must be reported by importers in the CBAM report: The total quantity of each type of goods, expressed in megawatt hours (MWh) for electricity and in tonnes for other goods, specified per installation producing the goods in the country of origin (made in); The actual total embedded emissions, expressed in tonnes of CO2e emissions per MWh of electricity or for other goods in tonnes of CO2e emissions per…
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CBAM and definitions for a better understanding
The Guidance document on CBAM implementation for importers of goods into the EU confirms and provides with the following definitions: ‘tonne of CO2e’ means one metric tonne of carbon dioxide (‘CO2’), or an amount of any other greenhouse gas listed in Annex I adjusted to the equivalent global warming potential of CO2. ‘Direct emissions’ means emissions from the production processes of goods, including emissions from the production of heating and cooling consumed during the production processes, regardless of the location of the production of the heating and cooling. ‘Indirect emissions’ means emissions from the production of electricity, which is consumed during the production processes of goods, regardless of the location…
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The next challenge of AEO: deforestation and CBAM
Environment protection is one of the key factor of the European trade policy. This requires a strong due diligence for the import of relevant commodities and the export of relevant product to prevent deforestation and forest degradation linked to cattle, cocoa, coffee, oil palm, rubber, soya and wood trade and deployment. From the other side, from October 2023 the reporting required by the Carbon border adjustment mechanism will enter into force for the import of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. CBAM implies a good management of the following customs aspects required for the AEO: The customs classification will play an important role to well identify the…
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CBAM and penalties
The article 16 of the document draft Ares(2023)4079551 will provide the cases where a penalty is imposed “…(a) the reporting declarant has not taken the necessary steps to comply with the obligation to submit a CBAM report, or (b) the reporting declarant has not taken the necessary steps to correct the CBAM report to comply with the obligations…”. The amount of the penalty, for each tonne of unreported embedded emissions shall be between EUR 10 and EUR 50. Moreover, the penalty can increase in accordance with the European index of consumer prices; in parallel, the national competent authorities may determine the exact amount based on the following criteria: “…(a) the…
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CBAM and carbon price paid
The reporting declarant has to provide in the CBAM report the following information regarding the carbon price paid in a country of origin for the embedded emissions: (a) form of carbon price; (b) the country of origin; (c) any rebate or other form of compensation available in the country that would have resulted in a reduction of that carbon price; (d) indication of the provision of a legal act providing for the carbon price, rebate, or other forms of relevant compensation, including a copy of the provision; (e) type of product indicated by CN code; (f) quantity of embedded emissions covered by the carbon price; (g) quantity of embedded emissions…
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CBAM, inward processing relief and CBAM report
The draft [Document Ares(2023)4079551] of a regulation “…laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period…” lays down the following data about the goods placed under inward processing (Article 257 of UCC) must be contained in the CBAM report: “… (a) the quantities of goods listed in Annex I to Regulation (EU) 2023/956 that have been released for free circulation following inward processing during that period; (b) embedded emissions corresponding to these quantities of goods listed in Annex I to Regulation (EU) 2023/956…
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CBAM: how calculate the emission
The draft [Document Ares(2023)4079551] of a regulation “…laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period…” states that the level of embedded emissions has to be calculated using one of the following methods: (a) determining emissions from source streams on the basis of activity data obtained by means of measurement systems and additional parameters from laboratory analyses or standard values; (b) determining emissions from emission sources by means of continuous measurement of the concentration of the relevant greenhouse gas in the flue gas…
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CBAM rules of application, reporting obligation and transitional period: a short check of the draft
It is available the draft [Document Ares(2023)4079551] of a regulation “…laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period…”. This document lays down that Each reporting declarant shall provide the following information: the quantity of the goods imported, expressed in megawatt hours for electricity and in tonnes for other goods; the type of goods as identified by their CN code., the country of origin of the imported goods; the installation where it was produced, identified by the following data: the applicable United Nations…