NEWS – India recently flagged concerns relating to sensitive and confidential trade data of its exporters getting compromised while complying with the European Union’s Carbon Border Adjustment Mechanism (CBAM)

CARBON BORDER ADJUSTMENT MECHANISM

• European Union (EU) tariff on carbon-intensive products
• Fair price on carbon intensive goods that are entering the EU
• Aim – encourage cleaner industrial production in non-EU countries
• Adopted on May 17, 2023
• Come into force from 2026
• Importers are obliged to purchase sufficient emission allowances for imported embedded emissions during the year
• In the transitional phase of the implementation of the CBAM, from October 1, 2023, to December 31, 2025, affected companies are subject to a reporting obligation without financial obligations