Transitional Period
CBAM legislation provides for a transitional period until 31 December 2025, during which importers must report on the embedded emissions of CBAM goods they import. Several options exist for calculating and reporting these emissions.
At the outset, the European Commission aimed to offer flexibility by making default values available to CBAM declarants lacking the necessary data. These values were intended specifically for the initial reporting quarters.
From Q3 2024 until 1 January 2025, stricter requirements applied. Declarants had to choose one of the following methods:
Full reporting in accordance with the EU methodology.
Reporting based on an equivalent method, such as:
- Carbon pricing at the installation level.
- Mandatory emission monitoring schemes at the installation.
- Internal emissions monitoring, possibly verified by an accredited verifier.
The Commission has developed various tools, including guidelines and templates, to support companies in obtaining the necessary data from producers. However, obtaining reliable information in practice often proves to be a considerable challenge.
February 2025: Proposals for Targeted Regulatory Relief
As of 1 January 2025, the rules were expected to tighten further, making actual emissions reporting the norm. However, in response to practical concerns, the Commission recognised that the CBAM regulation is complex and imposes high administrative burdens. It therefore proposed regulatory adjustments.
One proposal directly affects smaller importers. Initially, CBAM did not apply to shipments valued under EUR 150. The Commission now proposes replacing this value threshold with a quantitative threshold of 50 tonnes (weight) of CBAM goods per year (excluding hydrogen and electricity). As a result, smaller importers would be exempt from the regulation.
Although it is still a proposal, the Dutch Emissions Authority (NEa) has already announced that it will align with this approach for the reporting obligation with immediate effect. Importers of less than 50 tonnes (weight) CBAM-goods per year do not need to submit reports anymore in 2025.
For importers exceeding the 50-tonne threshold, the obligation to make efforts (“duty of effort”) to obtain actual emissions data is waived. As of Q1 2025, default values may again be used without further justification. However, these default values are set higher than the average actual emissions.
NEa Assessment Framework
The NEa has published an assessment framework used since Q3 2024 to determine when enforcement actions will be taken during the review of CBAM reports. Enforcement is triggered by reviews from the European Commission, which compares CBAM reports with corresponding customs declarations. If irregularities are found, the Commission informs the NEa.
Subsequently, the NEa may:
1. Inform the declarant;
2. Issue a warning; or
3. Initiate a correction procedure.
Whether a correction procedure is initiated depends on factors such as the volume of underreported CO₂, recurrence, or suspected intent.
In such procedures, the NEa requests the CBAM declarant to provide a corrected report within a specified timeframe. Insufficient compliance may result in a fine of €10 to €50 per tonne of unreported CO₂. Higher fines apply in cases of repeated non-compliance or prolonged deficiencies exceeding six months.
The duty of effort is assessed "based on the specific circumstances of the individual case." This implies a highly case-specific and subjective evaluation.
Given the recent proposals, the previously published NEa framework cannot apply unchanged. Importers of under 50 tonnes CBAM-goods are exempt from reporting altogether. Importers above that threshold who use default values are not subject to the duty of effort.
Nonetheless, the NEa may still verify whether data not based on default values has been checked for completeness and obvious errors. High emission levels may prompt an expectation of plausibility checks by the declarant.
Application for Authorised CBAM Declarant Status
From 1 January 2026, only authorised CBAM declarants may import CBAM goods. Applications must be submitted via the EU CBAM Registry using eHerkenning. On 1 May 2025, the NEa published the criteria and instructions on https://www.cbamtoelating.nl/. Applications will be processed from that date.
The NEa has indicated that applicants will receive a decision before 2026, provided a complete application is submitted before 1 September 2025 (120-day processing period).
Currently, the CBAM Regulation requires that each importer (or indirect representative) obtains authorisation for shipments over EUR 150 as of 1 January 2026.
In view of the Commission's proposal to introduce a higher threshold (50 tonnes), the NEa advises companies below that threshold to postpone applications until September 2025 or until further clarity is provided. If the proposal is not adopted or the threshold is lowered, the NEa will prioritise late applications from importers below the 50-tonne mark, provided they are submitted promptly after a final decision.
Applications must include:
Estimated monetary value and volume of goods to be imported, per type, for the current and following calendar year;
Information on the applicant's financial standing and operational capacity, supported by documentation such as financial statements;
- A declaration confirming that the applicant has not, within the last five years, been involved in serious or repeated breaches of customs, tax, or market abuse laws, and has no criminal record involving economic offences.
- A financial guarantee is required for businesses established less than two years ago.
Conclusion
CBAM legislation is designed to become progressively stricter. It is therefore crucial to ensure timely reporting and to gradually prepare for full compliance. Fortunately, the European Commission has recognised the regulatory complexity and the administrative burden it creates. The proposed adjustments are therefore a welcome development.
We will keep you informed of further developments. Should you require advice or support, we are at your disposal.