FIN TEM issued act clarifying national implementation of EU carbon border mechanism (CBAM), states Customs to be responsible for sale and buyback of CBAM certificates.
Follows EC Jan. 2024 flagged upcoming acts on aspects of CBAM rules, see #198493.
Background
CBAM is new policy instrument that equalizes the cost of emissions between EU and third countries, certain products imported from outside EU (e.g. steel, imported electricity) will be subject to same cost of buying CBAM certificates as within EU.
Will put EU goods, imported goods on the same level in terms of emissions pricing.
CBAM will be implemented as a system based on acquisition of CBAM certificates, separate from but mirroring EU emissions trading scheme, firms must declare imports and report resulting emissions to CBAM registry and acquire corresponding certificates.
Finland Implementation
On Dec. 5, 2024, the President of Finland approved the Act amending the Act on the implementation of the regulation on the EU carbon border mechanism.
New act contains the necessary national provisions supplementing EU CBAM Regulation for the implementation of the regulation for the purpose of collecting the actual fee.
Obligation to buy CBAM certificates to enter in force over 9-year period from 2026.
Amending act gives Customs additional tools to act as the competent authority for CBAM, so now responsible for sale and buy-back of certificates on EU trading platform.
Also provides for provision of guarantee to obtain status of authorized CBAM declarant, as well as possibility for Customs to issue more specific regulations on the approved forms of guarantee deemed to secure capabilities of authorized CBAM declarant.
And provisions on penalty fee for failure to return CBAM certificates, and on free-of-charge decision on an application for authorization, the right to information is amended so that Customs can receive the necessary information free of charge.
Effectiveness
The Act amending the Act on the implementation of the regulation on the EU carbon border mechanism enters into force on Jan. 1, 2025, CBAM implementation will expand from start of 2025, when importers will be able to apply for CBAM declarant permit.
Imports of CBAM products will be subject to a permit for importers from Jan. 1, 2026.
Information on applying for permit to be provided on Customs website and in bulletins.
At EU level, CBAM implementation will proceed with finalization of implementing acts, which will specify how the CBAM register will operate and how the authorization process for applying for the status of authorized CBAM importer will proceed.
