   
  
WT/CTE/GEN/32  
 
5 September  2023 
(23-5943) Page: 1/2 
Committee on Trade and Environment  Original: English  
 
  
CARBON BORDER ADJUSTMENT MECHANISM  
COMMUNICATION FROM THE EUROPEAN UNION  
The following communication, dated 4 September  2023, is being circulated at the request of the  
Delegation of the European Union . 
 
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1. The EU would like to inform the Members of the Committee on Trade and Environment that on 
17 August 2023  the EU following a public consultation adopted the Implementing Regulation 
on the reporting obligations during the transitional period of the carbon border 
adjustme nt mechanism  during its transitional phase (1 October 2023 – end of 2025), and 
published guidance for EU importers and third country producers on their practical 
implementation.  
2. The adopted Implementing Regulation  details the transitional reporting obligations for 
EU importers of CBAM goods, as well as the transitional methodology for calculating embedded 
emissions released during the production process of CBAM goods. During the C BAM's transitional 
phase, traders will only have to report on the emissions embedded in their imports subject to 
the mechanism without paying any financial adjustment. This will give adequate time for 
businesses to prepare in a predictable manner, while al so allowing for the definitive methodology 
to be fine -tuned by 2026.  
3. To help both importers and third country producers, the EU also published guidance for 
EU importers and non -EU installations on the practical implementation of the new rules. While 
import ers will be asked to collect fourth quarter data as of 1 October 2023, their first report will 
only have to be submitted by 31 January 2024.  
4. Dedicated IT tools to help importers perform and report these calculations are currently being 
developed, as well a s training materials, webinars and tutorials to support businesses when the 
transitional mechanism begins.  
5. As per the EU 's previous communication on the CBAM, the Regulation entered into force 
17 May 2023 on the day following that of its publication in th e Official Journal of the European 
Union, and it will start to apply from 1 October 2023, except for:  
a. Articles 5, 10, 14, 16 and 17 which will apply from 31 December 2024; and  
b. Article 2(2) and Articles 4, 6 to 9, 15 and 19, Article 20(1), (3), (4) and (5), Articles 21 
to 27 and 31 which will apply from 1 January 2026.  
6. CBAM will be introduced gradually, from October 2023 until the end of 2025, only reporting 
obligations under the Regulation will apply. The transitional period will involve extensive 
consu ltation of stakeholders, including international partners to increase our mutual 
understanding of the instrument.  
7. You can also find here the relevant press release.  WT/CTE/GEN/32  
 
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  8. The text of the CBAM Regulation can now be found on the eur -lex website:  
https://eur -lex.europa.eu/legal -content/EN/TXT/?uri=uriserv%3AOJ.L_.2023.130.01.0052.01.  
ENG&toc=OJ%3AL%3A2023%3A130%3ATOC  
 
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