CBAM & Sustainability

Combating climate change is the order of the day currently. Whether it is installing solar panels or reducing your own carbon footprint. One of the EU’s goals is to be climate neutral in 2050. This means that a number of steps have to be taken to realize this goal. One of those steps is to limit carbon emissions. Steps already have been taken regarding production in the EU.

In order to prevent production from taking place outside the EU and thereby causing ‘carbon leakage’, the EU is introducing the Carbon Border Adjustment Mechanism. This mechanism is being introduced in several phases within each member state of the EU. From October 2023, the reporting obligation for importers of certain types of goods will be introduced. Ultimately, in 2026, companies will pay for carbon emissions in (certain) third countries.