EU Carbon Border Adjustment Mechanism enters definitive phase

Regulation (EU) 2023/956 establishing the Carbon Border Adjustment Mechanism (CBAM) requires authorised CBAM declarants to: 1. Calculate embedded emissions of imports per default or verified methodology 2. Buy CBAM certificates priced at the weekly average ETS allowance price 3. Surrender annually by 31 May for the previous calendar year Covered HS chapters include 25, 27 (electricity), 28 (hydrogen, fertiliser inputs), 31 (fertilisers), 72-73 (iron and steel), 76 (aluminium). The EU Commission may extend scope to chemicals, polymers, and downstream products from 2026. Non-EU producers should set up CBAM monitoring under EU rules and consider applying for the "verified emissions value" pathway to reduce default penalty rates.