31.05.2024
The Start of the Transitional Period for CBAM
In October 2023, the transitional period for the Carbon Border Adjustment Mechanism (CBAM) began. This period, which runs from October 1, 2023, to December 31, 2025, offers companies the opportunity to adapt to the new situation, become familiar with the system, and prepare for the collection of accurate data.
Preparation and Reporting
One of the main goals of this transitional period is to prepare companies for the reporting of emission data. Until now, there was no obligation for companies to collect these data. To give companies time to perform the correct measurements, it has been decided to use default values for the reports of the fourth quarter of 2023 and the first and second quarters of 2024. These default values allow companies to practice quarterly reporting without yet having detailed emission data.
Change in Reporting Requirements
However, this changes from the third quarter of 2024 reporting onwards. From that moment, all companies importing CBAM-liable goods must report the actual emissions. This means they must obtain and report the actual emission data from the producer.
Consequences of Incomplete Reports
What happens if a company does not obtain the necessary emission information from the producer? For the third quarter of 2024 (and thereafter), a CBAM declarant is expected to do everything reasonably possible to obtain the actual emission data from the producer. If this fails and the CBAM declarant submits an incomplete or incorrect report, the Dutch Emissions Authority (NEa) can initiate a correction procedure.
In this correction procedure, the CBAM declarant is requested to supplement or correct the report. If the CBAM declarant makes insufficient effort to submit or correct a correct report, the NEa can decide to impose a fine. This fine ranges from €10 to €50 per ton of CO2 not reported.
More information about CBAM supervision and enforcement can be found on the website of the Dutch Emissions Authority: NEa CBAM.
