Online Info Session: Carbon Border Adjustment Mechanism

The Carbon Border Adjustment Mechanism (CBAM) is established by Regulation (EU) 2023/956. It is one of the legislative instruments adopted in the context of the European Green Deal, and its primary purpose is to address Carbon Leakage. Carbon leakage occurs when businesses transfer the production of goods/services to other countries with less stringent emissions constraints, or when goods from outside the EU, produced under less strict emissions standards, have a competitive advantage over similar goods produced in the EU. The ultimate aim is to incentivize non-EU suppliers to improve their environmental performance in the production of such goods.
 
The CBAM Regulation provides for a price to be paid in respect of carbon emitted in the production of certain goods, when those goods are imported into the EU, that is equivalent to the price paid by EU producers under the EU’s emissions trading system. The goods currently covered by the CBAM Regulation are iron and steel, aluminium, fertilisers, cement, electricity and hydrogen.  
 
During this session, being organised in collaboration with Malta Resources Authority, we will explore what CBAM is, how CBAM is being implemented locally, and what importers need to do to comply.