On Sep. 29, FIN TEM announced start of carbon limit mechanism.
FIN TEM has announced new obligations for importers with the implementation of the EU's carbon limit mechanism starting at the beginning of Oct. 2023.
Follows EP Jan. 2022 draft opinion on proposal for a CBAM regulation, see #125919.
CBAM
The EU's carbon limit mechanism (CBAM) is new type of EU policy instrument, where certain products coming from outside EU are subject to an emissions-based payment.
Purpose of the carbon limit mechanism is to prevent transfer of emission-intensive industrial production from the EU to countries with a looser climate policy.
Payment of the same amount that applies in the EU due to the EU's emissions trading.
Obligations apply to all companies/individuals who import products subject to CBAM.
CBAM goods include aluminium, cement and fertilizers, hydrogen, imported electricity and iron and steel, including certain iron and steel goods such as screws.
Importers must obtain emission data for imported CBAM goods from third countries.
Effectiveness
The implementation of the mechanism starts on Oct. 1, 2023, when importers' reporting obligation begins with the collection of payments starting on Jan. 1, 2026.
Dec. 2023 Carbon Border Adjustment
On Dec. 28, 2023, FIN GVT issued decisions of its general session of Dec. 28, 2023.
Including approval of the Law on the Implementation of Reg on the Carbon Limit Mechanism of the EU and Law on amending § 2 of the Law on Customs Administration.
The approved laws will be entering into force on Jan. 1, 2024.
Dec. 2024 Act Amended
On Dec. 5, 2024, FIN GVT said FIN PRL approved FIN TEM law amending Act on the Implementation of the Regulation on the European Union's Carbon Border Mechanism.
Follows, FIN Customs Jul. 2024 confirmed CBAM preparation is in progress, #221439.
Amendments include adding a new S 1a which defines the following terms: Authorized CBAM notifier; Import, CBAM certificate and Common central trading platform.
Amendments to S 2 setting out the responsibilities of the FIN TEM and FIN Customs.
A new S 2a on requirement to obtain a guarantee in order to obtain the status of an authorized CBAM notifier; new S 2b on exemption from fees for authorization decision.
Amendments to S 3 on the right to information and new S 4a on penalties.
FIN PRL also ordered that the law would enter into force on Jan. 1, 2025.
Regulators
FIN GVT; FIN TEM
Entity Types
B/D; Corp
Reference
Act TEM/2024/178, HE 99/2024 vp; EV 112/2024 vp, 12/5/2024; HE 52/2023 vp, EV 75/2023 vp, PR, 12/28/2023; PR, 9/29/2023; Reg 2023/956; ESG
