EU’s CBAM transition phase will provide valuable insight

Training for regional customs authorities and detailed analysis of reporting accuracy will ensure effectiveness of final scheme

Knowledge gained from the transition phase of the EU’s Carbon Border Adjustment Mechanism (CBAM) will be key to ensuring it prevents carbon leakage while ensuring uninhibited trade flows when fully implemented in 2026. The CBAM is designed to ensure that carbon-intensive goods entering the EU are subject to the same price on carbon as that enacted by the EU emissions trading scheme (ETS), which is currently around €80/t CO₂e ($85/t CO₂e). The transitional phase begins on 1 October 2023, with the first reporting period ending on 31 January 2024. The system will be fully implemented from 1 January 2026. Once the permanent system enters into force, importers will need to declare the quantity of