On April 18, 2023, the European Parliament formally approved the Carbon Border Adjustment Mechanism, if fully adopted, the CBAM will enter into force on October 1, 2023. In the transitional phase, importers in the European Union would be subject to reporting obligations.
Beginning in 2026, importers of certain products, i.e., aluminum, cement, hydrogen, electricity, or downstream products of steel such as steel nails would be required to purchase CBAM certificates. Additional CBAM requirements will be phased in gradually between 2026 and 2034.
In the first episode of ELP’s Trade Dialogue: CBAM Series, Episode 1- The EU’s CBAM Regulation, Arnoud Willems, Partner, International Commercial & Trade Practice Group, Baker Mckenzie, Brussels along with Sanjay Notani, Partner, International Trade & Customs Practice, ELP throws some light on the legal and political aspects of the CBAM Regulation, and the impact that the regulation is likely to have on Indian exports.
Tune into the episode here – https://rb.gy/oh6f5