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Brussels establishes the rules to apply the ‘green’ tax for the carbon emitted

Date: September 28, 2023 Time: 00:49:22

The green path to reduce emissions continues and the European Commission continues to take key measures to be able to analyze the behavior of some industries. For this reason, this Thursday it approved the regulations to be able to apply the Carbon Adjustment Mechanism at the Emission Border and they are not at a disadvantage compared to those of third countries with more lax climate requirements. The application of the transitional phase of the CBAM will begin on October 1 and will last until the end of 2025.

The published implementing regulation details the transitional notification obligations for importers during the European Union of CBAM merchandise, as well as the transitional methodology to calculate the embodied emissions released from the production process of CBAM merchandise.

This tax will be applied to import industries such as the steel industry, the production of cement or fertilizers, the aluminum sector and the generation of electricity, as the Commission will touch, with a transitory period where the importer’s obligations will be limited to providing data on their emissions.

The system will be extended to hydrogen, indirect emissions under certain conditions, certain precursors, as well as some intermediate products, such as bolts and similar articles of iron or steel, as requested by Parliament.

European importers of the affected products will first have to obtain an authorization and then buy the CO2 emission allowances corresponding to the carbon price that would have been paid if those same goods had been produced within the borders of the community club. The demands will be supported gradually from 2026 to 2034.

To help both importers and third country producers, the Commission has also on Thursday published guidance for EU importers and third country facilities on the practical application of the new rules.

At the same time, specific IT tools are being developed to help importers carry out and notify these, as well as training materials, webinars and tutorials to support companies when the transitional mechanism begins, the EC said in a statement. Although importers will be required to collect Q4 data beginning October 1, 2023, their first report will not need to be submitted until January 31, 2024.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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