On 1 October 2023, the CBAM entered into its transitional phase, with the first reporting period for importers ending 31 January 2024. 

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The EU’s Carbon Border Adjustment Mechanism (CBAM) is a tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. By confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU, the CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production, and that the EU's climate objectives are not undermined. 

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The CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. With this enlarged scope, CBAM will eventually – when fully phased in – capture more than 50% of the emissions in Emissions Trading System covered sectors. 

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This checklist will help importers of goods covered under the CBAM make sure they are aware of and in compliance with the new rules.