On October 1, 2023, the European Union’s Carbon Border Adjustment Mechanism (CBAM) was implemented, bringing with it a set of new obligations for importers. These obligations include monitoring import transactions, determining the embedded emissions in goods covered by the mechanism that are imported into the EU, and fulfilling reporting requirements. In Poland, the National Center for Emission Balancing and Management (KOBiZE) has been designated as the competent authority for CBAM.
One of the key tasks of KOBiZE is to provide importers with access to the CBAM Transitional Register. This register will enable importers to submit quarterly CBAM reports to the European Commission during the transition period. It is expected that the CBAM Transitional Register will become fully operational in early November 2023.
Importers will also need to be aware of the new import formalities that have been introduced as part of CBAM. These include a new type of control measure in the TARIC integrated customs tariff system and the ISZTAR4 information system. Additionally, importers will now have an obligation to provide the detail code “2C2” in the customs declaration for goods covered by CBAM.
The introduction of CBAM is a significant development in the EU’s efforts to combat climate change. By imposing carbon-related obligations on importers, the EU aims to create a level playing field for European industries that are subject to stringent emissions regulations. The CBAM mechanism will help prevent carbon leakage, which occurs when businesses relocate their production to countries with less stringent climate policies, thereby undermining the effectiveness of the EU’s climate goals.
CBAM will apply to a wide range of goods imported into the EU, including steel, cement, aluminum, electricity, and certain fertilizers. These goods are considered to have a high carbon footprint and are therefore targeted by the mechanism. The embedded emissions in these goods will be calculated based on the carbon content of the production process in the country of origin.
The implementation of CBAM has raised concerns among some trading partners of the EU. They argue that the mechanism could be seen as a form of protectionism and could lead to trade disputes. However, the EU has emphasized that CBAM is a measure aimed at ensuring the fairness and effectiveness of its climate policies, rather than a protectionist tool.
It is worth noting that CBAM is a transitional measure, and the EU has expressed its intention to work towards the establishment of a global carbon pricing system. The ultimate goal is to create a level playing field for businesses around the world and incentivize the reduction of greenhouse gas emissions on a global scale.
In conclusion, the implementation of the EU’s Carbon Border Adjustment Mechanism marks a significant step in the fight against climate change. Importers in Poland will need to familiarize themselves with the new obligations and import formalities introduced by CBAM. The National Center for Emission Balancing and Management will play a crucial role in facilitating the transition and ensuring compliance with the mechanism. As the CBAM Transitional Register becomes fully operational, importers will be able to fulfill their reporting obligations and contribute to the EU’s efforts to create a sustainable and low-carbon economy.
