Forslag til EUROPA-PARLAMENTETS OG RÅDETS FORORDNING om ændring af forordning (EU) 2023/956 for så vidt angår forenkling og styrkelse af kulstofgrænsetilpasningsmekanismen

EN EN
EUROPEAN
COMMISSION
Brussels, 26.2.2025
COM(2025) 87 final
ANNEXES 1 to 2
ANNEXES
to the
Proposal for a Regulation of the European Parliament and of the Council
amending Regulation (EU) 2023/956 as regards simplifying and strengthening the
carbon border adjustment mechanism
{SWD(2025) 58 final}
Offentligt
KOM (2025) 0087 - Forslag til forordning
Europaudvalget 2025
EN 1 EN
ANNEX I
Annex IV is amended as follows:
(1) in point 4, the third sentence is deleted.
(2) point 4.1 is amended as follows:
(a) the fourth sentence is replaced by the following:
‘When reliable data for the exporting country cannot be applied for a type of
goods, the default values shall be based on the average emission intensity of
the ten exporting countries with the highest emission intensities for which
reliable data can be applied for that type of goods.’;
(b) the fifth sentence is deleted;
(3) in point 7, the second paragraph is replaced by the following:
‘Where declarants for goods produced in a third country, a group of third countries or
a region within a third country can demonstrate, on the basis of reliable data, that
alternative region-specific adaptations of default values are lower than the default
values determined by the Commission, such region-specific adaptations can be used.’
EN 2 EN
ANNEX II
The following Annex VII is added:
‘ANNEX VII
Threshold referred to in Article 2(3a)
1. The threshold referred to in Article 2(3a) shall be set at 50 tonnes of net mass.
2. For determining the threshold, the following methodology shall be applied:
𝑸
̅ 𝒄𝒉𝒐𝒔𝒆𝒏 𝒔𝒖𝒄𝒉 𝒕𝒉𝒂𝒕
∑ 𝑬𝒎𝒊
𝑵
𝒊=𝟏 × 𝟏_(𝑸𝒊 > 𝑸
̅)
𝑻𝒐𝒕𝒂𝒍 𝒆𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒔
≥ 𝒕𝒂𝒓𝒈𝒆𝒕 𝒔𝒉𝒂𝒓𝒆 𝒐𝒇 𝒆𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒔 𝒐𝒇 𝟗𝟗%
Where:
– 𝑄
̅ is the mass-threshold in tonnes allowing to capture a given target share of
emissions;
– Annual emissions per importer; 𝑖, 𝐸𝑚𝑖 = ∑ 𝑞𝑖,𝑗𝐸𝐼𝑗
𝐽𝑖
𝑗=1 ;
– 𝑞𝑖,𝑗 is the imported volume in tonnes by importer 𝑖 of the CN code 𝑗;
– 𝐽𝑖 is the number of CN codes imported by importer 𝑖 among the four sectors
considered (aluminium, cement, fertilisers, iron and steel);
– 𝐸𝐼𝑗 is the emission intensity for CN code 𝑗1
;
– 𝑇𝑜𝑡𝑎𝑙 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠: the total emissions in CO2 of the four CBAM sectors considered,
that is the sum of corresponding emissions for all importers: 𝑡𝑜𝑡𝑎𝑙 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 =
∑ 𝐸𝑚𝑖
𝑁
𝑖=1 , where 𝑁 is the number of importers;
– 𝑄𝑖 = ∑ 𝑞𝑖,𝑗
𝐽𝑖
𝑗=1 : the total volume in tonnes of CBAM goods imported by importer 𝑖;
– 1(𝑄𝑖 > 𝑄
̅) is an indicator function equal to 1 when 𝑄𝑖 > 𝑄
̅ (that is, when an
importer is importing volumes higher than the mass-threshold 𝑄
̅), 0 otherwise.
To capture uncertainty over changes in trade patterns while maintaining the
environmental objective of this Regulation, a margin of 0.25 percentage points is
added to the level of 99% of the embedded emissions as referred to in Article 2(3a)
of this Regulation.
For simplicity, the threshold shall be rounded to the nearest ten.
By July of each calendar year, the Commission shall, based on import data covering
a reference period of 12 months preceding the month2
of this assessment, assess
whether the value derived from the methodology deviates by more than 5 tonnes
from the threshold laid down in point 1.’
1
The emission intensities 𝐸𝑗 are based on default values (without mark-up) for emissions published for the
transitional period. For cement and fertiliser products, direct emissions and indirect emissions are considered; for
aluminium and iron and steel products, only direct emissions are considered. For future updates of the threshold,
the default values shall be set in accordance with the methods set out in Annex IV without the mark-up as referred
to in Section 4.1 of Annex IV.
2
For the purposes of establishing the threshold referred to under point 1, import volumes by importer were
calculated based on import data for the period of 1 October 2023 to 30 September 2024.


EN EN
EUROPEAN
COMMISSION
Brussels, 26.2.2025
COM(2025) 87 final
2025/0039 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Regulation (EU) 2023/956 as regards simplifying and strengthening the
carbon border adjustment mechanism
(Text with EEA relevance)
{SWD(2025) 58 final}
Offentligt
KOM (2025) 0087 - Forslag til forordning
Europaudvalget 2025
EN 1 EN
EXPLANATORY MEMORANDUM
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
In his report on ‘The Future of European Competitiveness’, Mario Draghi emphasised the
need for Europe to create a regulatory landscape which facilitates competitiveness and
resilience1
. In the Budapest Declaration on the New European Competitiveness Deal, EU
Heads of State and Government called for ‘a simplification revolution, ensuring a clear,
simple and smart regulatory framework for businesses and drastically reducing administrative,
regulatory and reporting burdens, in particular for SMEs’2
. Multiple companies and
stakeholders have voiced their concerns about the administrative burden resulting from a
number of EU acts, including Regulation (EU) 2023/956 establishing a Carbon Border
Adjustment Mechanism (‘CBAM Regulation’)3
.
In its Communication on the Competitive Compass for the EU, the Commission confirmed
that it would deliver an unprecedented simplification effort to achieve the agreed policy
objectives in the simplest, most targeted, most effective and least burdensome way. In its
Communication entitled ‘A simpler and faster Europe: Communication on implementation
and simplification’, the Commission set out an implementation and simplification agenda that
delivers fast and visible improvements for people and business on the ground, requiring more
than an incremental approach and underlining the need for bold action to streamline and
simplify EU, national and regional rules4
.
Administrative requirements, including reporting requirements, play a key role in ensuring
correct enforcement and proper monitoring of legislation. Generally, their costs are largely
offset by the benefits they bring. However, reporting requirements can also impose
disproportionate burdens on stakeholders, particularly affecting small and medium-sized
enterprises and micro-companies.
This proposal will deliver simplifications and cost-efficient improvements to the CBAM
Regulation without affecting the achievement of objectives in this policy area. The proposed
measures will not undermine the environmental objective of CBAM, rather the measures will
enable a more efficient CBAM while the key design principles of the mechanism will remain
unchanged.
The proposal will make it easier for importers of goods into the Union to comply with CBAM
reporting obligations by simplifying some of those CBAM reporting requirements which rely
on complex calculations and data collection processes which would hamper the CBAM’s
effective implementation.
In addition, the proposal will strengthen the monitoring and supervision of CBAM. It will
increase the ability of the Commission to process data and exchange relevant information with
national authorities to ensure that the utility of the information reported by stakeholders is
1
“The future of European competitiveness”, September 2024.
2
Budapest Declaration on the New European Competitiveness Deal, 8 November 2024.
3
Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing
a carbon border adjustment mechanism (OJ L 130, 16.5.2023, p. 52,
ELI: http://data.europa.eu/eli/reg/2023/956/oj).
4
Reference to be added when published
EN 2 EN
maximised. It will also enable the Commission to better detect risks and the national
competent authorities to be better equipped to take appropriate actions where needed
Finally, simplifying the mechanism will also be a key enabler for a potential future scope
extension. In the second half of 2025, the Commission will present a comprehensive CBAM
review report as provided in Article 30 of the CBAM regulation, which will pave the way for
a potential extension of the CBAM scope.
• Consistency with existing policy provisions in the policy area
This proposal is part of a package of measures aiming at simplifying reporting requirements,
by looking comprehensively at existing requirements, with a view to assess their continued
relevance and to make them more efficient. It builds on existing rules from the CBAM
Regulation, Commission Implementing Regulation (EU) 2023/1773 of 17 August 2023 laying
down the reporting obligations for the transitional period5
and Commission Implementing
Regulation (EU) 2024/3210 of 18 December 2024 laying down rules for the CBAM registry6
.
• Consistency with other Union policies
The proposal is consistent with the objectives of the better regulation agenda, as it will
strengthen the Commission’s ability to carry out its general supervision of CBAM, while
avoiding the costs (both for the Commission and the entities providing the information) that
would otherwise be incurred in collecting the information through other means.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The proposal amends an existing regulation. Therefore, the legal basis for the proposal is the
same as the legal basis of the amended Regulation, namely Article 192(1) of the Treaty on the
Functioning of the European Union (‘TFEU’) in the area of environment protection.
In accordance with Articles 191 and 192(1) of TFEU, the Union shall contribute to the
pursuit, inter alia, of the following objectives: preserving, protecting and improving the
quality of the environment, promoting measures at international level to deal with regional or
worldwide environmental problems, and in particular combating climate change.
• Subsidiarity (for non-exclusive competence)
The CBAM Regulation created a common uniform framework ensuring an equivalence
between the carbon pricing policy applied in the EU’s internal market and the carbon pricing
policy applied on imports.
The simplifications to that regulation envisaged by this proposal will further enhance legal
certainty and rationalise the reporting requirements.
5
Commission Implementing Regulation (EU) 2023/1773 of 17 August 2023 laying down the rules for
the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting
obligations for the purposes of the carbon border adjustment mechanism during the transitional period (OJ L
228, 15.9.2023, p. 94, ELI: http://data.europa.eu/eli/reg_impl/2023/1773/oj).
6
Commission Implementing Regulation (EU) 2024/3210 of 18 December 2024 laying down rules for the
application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards the CBAM
registry (OJ 30.12.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/3210/oj).
EN 3 EN
• Proportionality
The simplification of administrative requirements, including reporting requirements,
simplifies the legal framework by introducing changes to existing requirements that do not
affect the substance of the policy objectives. The proposal is therefore limited to those
changes that are necessary to decrease the compliance burden and to ensure compliance in a
more efficient manner without changing the substance of the legislation concerned.
The proposal is consistent with the principle of proportionality as it does not go beyond what
is necessary to meet the objectives of the Treaties. The proportionality of the proposal has a
number of important aspects.
Firstly, it is recognised that it is challenging for importers to deal with the CBAM reporting
requirements while at the same time Member States’ competent authorities must carry out
important supervision tasks. This will be mitigated by introducing a threshold to exempt from
CBAM obligations certain importers.
Secondly, for importers within the CBAM scope, the proposal contains changes to the
reporting requirements, targeting those which are necessary to decrease the compliance
burden and ensure compliance in a more efficient manner.
• Choice of the instrument
The proposal requires amending the CBAM Regulation. It lays down the specific rules
necessary for the simplified application of certain provisions of the CBAM Regulation, where
the goals pursued cannot be reached through the adoption of implementing measures as they
require amending basic provisions of the CBAM Regulation. This concerns the de minimis
derogation, the reporting obligations, the calculation of embedded emissions and the
calculation of the financial adjustment.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER
CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
The proposal relies on the experience gained in implementing the CBAM Regulation since the
mechanism started to apply in its transitional phase on 1 October 2023.
• Stakeholder consultations
Since the CBAM started to apply in its transitional phase on 1 October 2023, the Commission
Services have continuously been consulting stakeholders in the Union and in third countries
relevant for CBAM via multiple communication channels. In 2023, the Commission Services
renewed the mandate of the expert group on CBAM7
whose mission is to assist the
Commission services in the development and implementation of the CBAM, harness technical
expertise and bring exchanges of experience and good practices in CBAM implementation.
In 2023, the Commission Services also launched a broad communication campaign to raise
awareness about CBAM including in third countries, explain the rules and provide useful
advice in how CBAM could be implemented by the relevant stakeholders (such as importers,
7
https://ec.europa.eu/transparency/expert-groups-register/screen/expert-
groups/consult?lang=en&groupID=3927
EN 4 EN
third country producers, national authorities). This communication campaign relied on
publicly available live webinars in several EU languages. Useful materials have been
provided on the CBAM-dedicated webpage8
: targeted e-learning materials, Q&A, guidance
(also translated to non-EU official languages).
The Commission was also in regular contact with national competent authorities for CBAM,
to discuss various issues concerning implementation of CBAM, with a view to improve its
functioning and effectiveness.
On 6 February 2025, the Commission hosted a high-level consultation day with key
stakeholders to test the main ideas of the legislative package on simplification on targeted
policies, including the CBAM, and to collect input and feedback ahead of its adoption on 26
February 2025.
Based on these actions and repeated public meetings with relevant business representatives
from the Union and third countries, the Commission Services have collected sufficient
feedback from stakeholders to adopt the best measures to achieve the objective of the
proposal: simplify the complex reporting rules to reduce the compliance burden and ensure
CBAM is efficiently rolled out while preserving its environmental objective and climate
objective.
• Collection and use of expertise
The proposal has been elaborated following a process of internal scrutiny of existing reporting
obligations and is based on experience in implementing the related legislation, including the
data collected through the quarterly CBAM report submitted by declarants. Since this is a step
in the process of continuous assessment of reporting requirements in Union legislations, the
scrutiny of such burdens and of their impact on stakeholders will continue in the future.
• Impact assessment
The proposal concerns targeted changes of the CBAM Regulation to simplify some of its
requirements, including reporting. The main measures are based on experience in
implementing this Regulation and abovementioned related implementing acts. The proposed
targeted changes ensure a more efficient and effective implementation of the existing
mechanism.
This proposal is accompanied by an analytical document, the Commission Staff Working
Document (SWD) “Towards a simpler and more effective Carbon Border Adjustment
Mechanism”9
. The analytical document builds on and further complements the analysis
carried out in the original impact assessment conducted in 2021.
• Regulatory fitness and simplification
In the 2021 impact assessment accompanying the CBAM legislative proposal10
, the
Commission concluded that, since CBAM is initially applied to imports of selected basic
materials and their products, large businesses would be the primary ones affected, but that in
practice the CBAM would result in relatively higher compliance costs for small and medium-
8
https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en
9
XXX.
10
SWD(2021) 643 final.
EN 5 EN
sized enterprises (SMEs) compared to large enterprises in scope of CBAM, e.g. those
importing CBAM goods above the derogation.
Based on the experience in implementing CBAM in its transitional phase, and on the
assessment of stakeholders’ feedback since 1 October 2023, it has become clear that CBAM
requires two types of main simplifications: a broader derogation from CBAM requirements of
importers of very small quantities of CBAM goods, and a set of simplifications for the rest of
the importers of CBAM goods to facilitate their compliance with the administrative
requirements.
The proposed simplification is expected to exempt around 90% of importers from CBAM
obligations, while maintaining more than 99% of embedded emissions in scope of CBAM,
thereby safeguarding the environmental nature of the mechanism.
• Fundamental rights
The proposal respects the fundamental rights and observes the principles recognised in
particular by the Charter of Fundamental Rights of the Union. In particular, it contributes to
the objective of a high level of environmental protection in accordance with the principle of
sustainable development as laid down in Article 37 of the Charter.
4. BUDGETARY IMPLICATIONS
This proposal will have implications for the EU budget. Its impact is assessed in the
legislative financial and digital statement accompanying this proposal.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
As the proposal amends the CBAM Regulation, it does not have additional implementation
plans and monitoring, evaluation and reporting arrangements beyond the existing ones under
the said Regulation.
It is however important to recall that the Commission will continue ensuring that
arrangements are in place to monitor and evaluate the functioning of the CBAM, including its
enforcement against circumvention practices, and evaluate it against the main policy
objectives. Given that the CBAM is one of the policy proposals under the ‘Fit for 55 Package’
adopted by the Commission in July 202111
, monitoring and evaluation will be carried out in
alignment with the other policies of the package.
The Commission will monitor how CBAM is implemented to feed into its analysis and will
regularly report to the European Parliament and to the Council on the application of the
CBAM Regulation. As part of that reporting, the Commission will propose possible changes
to improve its functioning, collect the necessary information for a potential further extension
of the scope of CBAM, including on other goods that could be at risk of carbon leakage, such
as downstream products. Those reports should also contain an assessment of the impact of the
CBAM on carbon leakage, including in relation to exports, and its economic, environmental,
social and territorial impact throughout the Union.
11
COM(2020) 690 final.
EN 6 EN
• Detailed explanation of the specific provisions of the proposal
The proposal contains two types of simplifications.
First, importers of small quantities of CBAM goods, which represent very small quantities of
embedded emissions imported into the Union and in most cases correspond to SMEs and
individuals, will be exempt from CBAM obligations. For those importers, the administrative
burden resulting from compliance with CBAM obligations significantly outweighs the
environmental and regulatory benefit. This is due to the combination of (i) the insignificant
share of embedded emissions in all their CBAM goods imported into the Union and (ii) the
inability of national authorities to enforce the rules due to the large numbers of importers of
small quantities of CBAM goods.
Second, the proposal contains a set of simplifications for importers of CBAM goods above the
threshold to facilitate their compliance with the reporting requirements. In particular, the
proposal simplifies and streamlines the authorisation procedure for national competent
authorities and the Commission, the data collection processes from third country producers to
authorised CBAM declarants, the calculation of embedded emissions for certain goods, the
emission verification rules, the calculation of the authorised CBAM declarants’ financial
liability during the year of imports into the EU and the claim by authorised CBAM declarants
for carbon prices paid in third countries where goods are produced.
Article 1(1) amends the derogation from the CBAM obligations by introducing a new mass
threshold as laid out in a new Annex VII to the CBAM Regulation, to exclude importers of
very small quantities of goods.
Article 1(2) amends the definitions of importer and operator to facilitate reporting
requirements.
Articles 1(3) and 1(4), point (b), draw the consequences of the new threshold on the rules
related to the authorisation that importers must be granted to import goods above that
threshold, and provide for the possibility for authorised CBAM declarants, which remain
legally responsible of their CBAM obligations, to technically delegate in the CBAM Registry
the reporting requirements to third parties to facilitate compliance.
Articles 1(4)(a) changes the annual deadline for submitting the annual CBAM declaration.
Article 1(4)(c) introduces the possibility for authorised CBAM declarants to claim a carbon
price paid in a third country other than the country of origin.
Articles 1(4), point (d), and 1(6) amend the rules on emission verification so that the
obligation to verify embedded emissions only applies to actual values.
Article 1(5) amends the calculation of embedded emissions in the case of relevant input
materials (precursors).
Article 1(7) introduces the possibility for authorised CBAM declarants to use default carbon
prices calculated and made available by the Commission and claim carbon prices paid in third
countries other than the country of origin of the goods.
Article 1(8) facilitates reporting obligations by introducing several changes to the portal
established pursuant to Article 10 to register operators and installations in third countries.
EN 7 EN
Article 1(9) creates the registration of accredited verifiers so they can access the CBAM
registry and carry out certain relevant tasks to facilitate reporting obligations.
Article 1(10) strengthens the empowerment Member States give to their national competent
authority to carry out the CBAM-related duties and responsibilities.
Articles 1(11) and 1(13) draw the consequences of the changes introduced by this proposal on
the requirements applying on the CBAM registry, risk analysis and monitoring.
Article 1(12) streamlines the consultation of other competent authorities and the Commission
to reduce excessive administrative burden.
Article 1(14) sets the start date of the sales of CBAM certificates to February 2027 to address
significant uncertainties related to the year 2026, which is the first year of the post-transitional
period, and streamlines the information exchanges between the CBAM registry and the
common central platform.
Articles 1(15) and 1(18) draw the consequences of the move of certificate sales to 2027 on the
determination of the financial adjustment for the year 2026.
Article 1(16) simplifies the calculation as from 2027 by authorised CBAM declarants of their
expected financial liability during the year of imports.
Article 1(17) modifies the repurchase limit to facilitate the way authorised CBAM declarant
may manage their CBAM financial liability and draws the consequence of the change of the
CBAM declaration submission annual deadline.
Articles 1(19) modifies the scope of information exchanged with customs authorities, the
competent authorities and the Commission to reflect the introduction of the derogation.
Articles 1(20) and 1(22) introduce the rules and information exchanges on the monitoring of
the derogation.
Article 1(21) introduces the possibility for competent authorities to modulate the penalty
based on relevant facts and circumstances and draws the consequences of the new derogation.
Article 1(23) amends the empowerments given to the Commission by the co-legislators to
adopt delegated acts in light of the simplifications made by this proposal.
Article 1(24) complements the reporting by the Commission to the co-legislators with the
application of the derogation as amended by this proposal.
Article 1(25) amends the list of CBAM goods to exclude non-calcined kaolinic clays.
Article 1(26) adds electricity to the list of CBAM goods for which only direct emissions are to
be taken into account in the calculation of the embedded emissions.
Article 1(27) amends Annex IV to Regulation (EU) 2023/956 to exclude input materials
which have been subject to the EU ETS or to a carbon pricing system that is fully linked with
the EU ETS.
Article 1(28) introduces a new Annex VII to set the threshold referred to in Article 1(1) point
(b).
EN 8 EN
Finally, the Annexes contain several simplifications of embedded emission calculation to
facilitate reporting obligations, for instance in the case of default values or precursors
produced in the EU.
EN 1 EN
2025/0039 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Regulation (EU) 2023/956 as regards simplifying and strengthening the
carbon border adjustment mechanism
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 192(1) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee12
,
Having regard to the opinion of the Committee of the Regions13
,
Acting in accordance with the ordinary legislative procedure,
Whereas:
(1) During the transitional period, which started on 1 October 2023, the Commission has
been collecting data and information on the implementation of the Carbon Border
Adjustment Mechanism (‘CBAM’) as provided for in Regulation (EU) 2023/956 of
the European Parliament and of the Council14
, including through the analysis of
quarterly reports submitted by reporting declarants. The information collected and the
exchanges with the stakeholders, including as part of the expert group on the CBAM,
have outlined possibilities for simplifications and improvement of the CBAM. The
Union is committed to ensure a smooth roll-out of the CBAM during the post-
transitional period starting on 1 January 2026.
(2) Based on the experience acquired and data collected during the transitional period, the
distribution of importers of CBAM goods into the Union shows that only a small
proportion of importers accounts for the vast majority of embedded emissions in those
goods. The derogation applied to the importation of goods of negligible value referred
to in Article 23 of Regulation (EC) No 1186/2009 (consignments of a value below
EUR 150) appears insufficient to ensure that the CBAM applies to importers in
proportion to their impact on emissions covered by Regulation (EU) 2023/956. For
those importers of small quantities of goods, compliance with CBAM reporting and
financial obligations could be unduly burdensome. Furthermore, as part of the 2023
12
OJ C , , p. .
13
OJ C , , p. .
14
Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing
a carbon border adjustment mechanism (OJ L 130, 16.5.2023, p. 52, ELI:
http://data.europa.eu/eli/reg/2023/956/oj).
EN 2 EN
Customs reform package, the Commission proposed to remove this derogation15
.
Therefore, a new derogation should be introduced to exempt importers of small
quantities in terms of mass of CBAM goods from CBAM obligations, while
preserving the environmental objective of that mechanism and its capacity to achieve
its climate objective.
(3) A new threshold based on cumulative mass per importer per year should be introduced
in Regulation (EU) 2023/956, ensuring that more than 99% of emissions are
maintained in scope. This is a robust and targeted approach as it accurately reflects the
environmental nature of the CBAM by taking into account all imported emissions over
a period of time in determining the threshold. It also eliminates the risk of
circumvention through the artificial splitting of consignments by a single importer.
(4) A mass-based threshold reflecting the average emissions intensity of the volume of
imported CBAM goods would better translate the climate objective of the CBAM. A
single mass-based threshold applying cumulatively to all CBAM goods in the iron and
steel, aluminium, fertilisers and cement sectors imported by importers during a
calendar year is the simplest design for importers, as they will not have to obtain or
provide any data additional to those provided in the customs declaration, thereby
reducing substantially any CBAM-related administrative burden for these importers. A
threshold set at a level of 50 tonnes will exempt the vast majority of importers from
obligations under Regulation (EU) 2023/956 while maintaining more than 99% of
embedded emissions in the scope of the CBAM. To establish the threshold, a new
Annex VII should be introduced.
(5) The main principles governing the threshold, including ensuring that nearly all
embedded emissions remain in the scope of the CBAM, should be laid down in
Regulation (EU) 2023/956 to provide legal certainty. Regulation (EU) 2023/956
should also provide for the possibility to re-calculate the threshold on the basis of
updated average emission intensities of imported goods or significant changes in trade
patterns or practices of circumvention affecting the coverage of embedded emissions
in the scope of the CBAM.
(6) To ensure that the derogation is sufficiently targeted, it should apply to the importer.
The indirect customs representative, due to the nature of its activity and the related
obligations under Regulation (EU) 2023/956, should always be required to obtain an
authorisation.
(7) The competent authorities and the Commission should – based on customs
information – monitor the quantities of goods imported to assess compliance with the
threshold. To allow the competent authorities to make an informed decision, the
customs authorities and the Commission should make the necessary information and
data available to the competent authorities. Where the competent authority concludes
that an importer has exceeded the threshold, it should communicate that information to
the customs authorities who, in turn, should not allow further importation of goods
from that importer until the end of the calendar year, or until that importer has
obtained the status of authorised CBAM declarant.
15
Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 2658/87 as regards the
introduction of a simplified tariff treatment for the distance sales of goods and Regulation (EC) No 1186/2009 as
regards the elimination of the customs duty relief threshold (COM(2023) 259 final.
EN 3 EN
(8) Where an importer expects to exceed the annual threshold or intends to import goods
after exceeding the threshold, the importer should apply for authorisation pursuant to
Article 5 of Regulation (EU) 2023/956. For importers who have not been granted the
authorisation before exceeding the threshold, penalties should apply for the entirety of
the imported goods in accordance with Article 26(2) of Regulation (EU) 2023/956.
The payment of the penalty in accordance with Article 26(2) of that Regulation should
release the importer from the obligation to submit a CBAM declaration and to
surrender CBAM certificates.
(9) To ensure that the definition of an importer covers all relevant customs procedures, it
is necessary to amend it to include the case of the simplified customs procedure where
only a bill of discharge is submitted pursuant to Article 175(5) of Commission
Delegated Regulation (EU) 2015/244616
.
(10) To strike a balance between the effectiveness of the authorisation procedure and the
risk profile of the applicants, the consultation procedure should be optional for the
competent authority. The consultation procedure should allow the competent authority
to consult other competent authorities and the Commission when considered necessary
based on the information submitted by the applicant and customs information made
available in the CBAM registry.
(11) To provide additional flexibility, the authorised CBAM declarants should be able to
delegate the submission of the CBAM declaration to a third party. The authorised
CBAM declarant should remain liable for the submission of the CBAM declaration.
To provide the required delegation and access, that third party should fulfil certain
technical credentials, including holding an Economic Operators Registration and
Identification (EORI) number and being established in a Member State.
(12) Authorised CBAM declarants are required to submit their annual CBAM declaration
and surrender the corresponding number of certificates by 31 May of the year
following the year of import. In order to provide authorised CBAM declarants
flexibility to comply with their obligations, a later date of submission would provide
authorised CBAM declarants more time to collect the necessary information, ensure
that embedded emissions are verified by an accredited verifier, and purchase the
corresponding number of CBAM certificates. The date for the cancellation of CBAM
certificates should be adjusted accordingly.
(13) The embedded emissions of some aluminium and steel goods currently included in the
scope of CBAM are primarily determined by the embedded emissions of input
materials (precursors), while the emissions arising during the production steps of those
goods are typically relatively low. They consist of finishing processes that are carried
out by separate installations not covered by the EU emissions trading system (‘EU
ETS’) as provided for in Directive 2003/87/EC of the European Parliament and of the
Council17
, except for the case of integrated facilities. The embedded emissions of
those production processes should be excluded from the system boundaries of the
calculation of emissions.
16
Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU)
No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain
provisions of the Union Customs Code (OJ L 343, 29.12.2015 p. 1, ELI:
http://data.europa.eu/eli/reg_del/2015/2446/oj).
17
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a
system for greenhouse gas emission allowance trading within the Union and amending Council
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj).
EN 4 EN
(14) Where input materials (precursors) have already been subject to the EU ETS or to a
carbon pricing system that is fully linked with the EU ETS, the embedded emissions
of those precursors should not be accounted for in the calculation of the embedded
emissions of complex goods.
(15) Authorised CBAM declarants are required to submit an annual CBAM declaration
containing the calculation of embedded emissions on the basis of either default values
or actual values verified by accredited verifiers. Default values will be calculated and
made available by the Commission. Therefore, the verification of embedded emissions
should only apply to actual values.
(16) Information collected during the transitional period illustrates difficulties for reporting
declarants to obtain the required information on the carbon price effectively paid in a
third country. To facilitate the deduction of the carbon price, the Commission should,
where possible, establish an annual average carbon price expressed in EUR/tCO2e of
the effective carbon price paid, based on the best available data from reliable, publicly
available information and information provided by third countries, including on a
conservative basis.
(17) Authorised CBAM declarants may claim a reduction in the number of CBAM
certificates to be surrendered corresponding to the carbon price effectively paid in the
country of origin for the declared embedded emissions. Since the carbon price may be
paid in a third country other than the country of origin of the imported goods, such
carbon price should also be eligible for deduction.
(18) To improve the reliability of the emissions data contained in the CBAM registry and to
facilitate the submission of data, accredited verifiers should be allowed to access the
CBAM registry to verify the embedded emissions upon request from an operator in
third countries. In addition, parent companies or related undertakings of those
operators should be allowed to access the CBAM registry for the purpose of
registering and sharing relevant data on behalf of the controlled operator. The
operators should be required to provide a corporate or activity registration number to
ensure their identification.
(19) To foster the implementation of Regulation (EU) 2023/956 at national level, Member
States should ensure that the competent authorities have the necessary powers to
perform their duties.
(20) To provide authorised CBAM declarants sufficient time to prepare for compliance
with the amended obligations under Regulation (EU) 2023/956, Member States should
start selling CBAM certificates in 2027 for emissions embedded in goods imported
during the year 2026. The price of CBAM certificates, purchased in 2027 and
corresponding to emissions embedded in goods imported into the EU in 2026, should
reflect the prices of EU ETS allowances in 2026.
(21) The obligation for the authorised CBAM declarants to ensure that the number of
CBAM certificates on their account in the CBAM registry at the end of each quarter
corresponds to at least 80 % of the emissions embedded in the goods they have
imported since the start of the year, is insufficiently tailored to the expected financial
adjustment. It is therefore necessary to both reduce the ratio from 80 % to 50 % and
integrate the free allocation of EU ETS allowances. Furthermore, the authorised
CBAM declarant should be able to rely on the information submitted in the CBAM
declaration in the previous year, for the same goods and third countries.
EN 5 EN
(22) The repurchase limit should likewise align more accurately with the number of CBAM
certificates which the authorised CBAM declarants are required to purchase during the
year of imports.
(23) Since CBAM certificates are cancelled without any compensation, there is no need for
an exchange of information from the common central platform to the CBAM registry
at the end of the working day.
(24) The competent authorities, when applying penalties, should be able to take into
account the specific circumstances such as the intentional or negligent behaviour of
the declarant. That would allow for a reduction of the amount of the penalty where
minor or unintentional errors are made.
(25) The CBAM applies to certain carbon-intensive goods imported into the Union. The list
of CBAM goods in Annex I of Regulation (EU) 2023/956 includes ‘[o]ther kaolinic
clays’ in the list of cement goods. While calcined kaolinic clays are carbon-intensive
products, this is not the case for non-calcined kaolinic clays. Non-calcined kaolinic
clays should therefore be excluded from the scope of the CBAM.
(26) Annex II to Regulation (EU) 2023/956 lists the goods for which only direct emissions
should be taken into account in the calculation of embedded emissions. For goods not
listed in that Annex, both direct and indirect emissions should be taken into account.
Since indirect emissions are not relevant in the case of electricity generation,
electricity should be added to the list of goods in that Annex.
(27) It is also necessary to simplify the means for determining default values when reliable
data for the exporting country would not be available for a certain type of goods. In
such cases, to prevent carbon leakage, the default value should be set at the level of the
average emission intensity of the ten exporting countries with the highest emission
intensities for which reliable data is available, which is an appropriate average to
ensure the environmental objective of the CBAM. This is without prejudice to the
possibility to adapt these default values based on region-specific features pursuant to
point 7 of Annex IV of the CBAM.
(28) In order to amend certain non-essential elements of Regulation (EU) 2023/956, the
power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of
the European Union should be delegated to the Commission in respect of amending
the threshold in Annex VII to that Regulation, where necessary, as determined in
accordance with Article 2(3a) of that Regulation. It is of particular importance that the
Commission carry out appropriate consultations during its preparatory work, including
at expert level, and that those consultations be conducted in accordance with the
principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better
Law-Making*. In particular, to ensure equal participation in the preparation of
delegated acts, the European Parliament and the Council receive all documents at the
same time as Member States' experts, and their experts systematically have access to
meetings of Commission expert groups dealing with the preparation of delegated acts.
* Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European
Commission on Better Law-Making, Interinstitutional Agreement of 13 April 2016 on Better Law-Making, (OJ L 123,
12.5.2016, p. 1–14, ELI:
http://data.europa.eu/eli/agree_interinstit/2016/512/oj).
(29) Since the objectives of this Regulation cannot be sufficiently achieved by the Member
States, namely simplifying certain obligations and strengthening the mechanism that
the Union has adopted to prevent the risk of carbon leakage and thereby reduce global
carbon emissions but can rather, by reason of the scale or effects of the action, be
EN 6 EN
better achieved at Union level, the Union may adopt measures, in accordance with the
principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In
accordance with the principle of proportionality as set out in that Article, this
Regulation does not go beyond what is necessary in order to achieve those objectives.
(30) Regulation (EU) 2023/956 should therefore be amended accordingly,
HAVE ADOPTED THIS REGULATION:
Article 1
Amendments to Regulation (EU) 2023/956
Regulation (EU) 2023/956 is amended as follows:
(1) Article 2 is amended as follows:
(a) paragraph 3 is replaced by the following:
‘3. By way of derogation from paragraphs 1 and 2, this Regulation shall not apply to
goods to be moved or used in the context of military activities pursuant to Article 1,
point (49), of Commission Delegated Regulation (EU) 2015/2446*.
*Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the
European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code (OJ
L 343, 29.12.2015, p. 1, ELI: http://data.europa.eu/eli/reg_del/2015/2446/oj).
’;
(b) the following paragraph 3a is inserted:
‘3a. By way of derogation from paragraphs 1 and 2, importers, including authorised
CBAM declarants, shall be exempted from the obligations under this Regulation,
where the goods listed in Annex I, with the exception of electricity and hydrogen, do
not exceed, cumulatively per calendar year, the mass-based threshold laid down in
point 1 of Annex VII.
The threshold laid down in point 1 of Annex VII shall ensure that at least 99% of the
emissions embedded in the imported goods and processed products pursuant to
Article 2(1) and (2) are not covered by the derogation referred to in the first
subparagraph.
The Commission is empowered to adopt delegated acts to amend the mass threshold
set out in Annex VII to reflect a material change in the average emission intensities
of goods used for the calculation of the threshold laid down in point 1 of Annex VII,
or significant changes in the pattern of trade in goods, including practices of
circumvention of that threshold as referred to in Article 27(2), point (b).’;
(2) Article 3 is amended as follows:
(a) point (15) is replaced by the following:
‘(15) ‘importer’ means either the person lodging a customs declaration for release for
free circulation of goods or a bill of discharge in accordance with Article 175(5) of
Delegated Regulation (EU) 2015/2446 in its own name and on its own behalf or,
where the customs declaration is lodged by an indirect customs representative in
accordance with Article 18 of Regulation (EU) No 952/2013, the person on whose
behalf such a declaration is lodged;
(b) point (31) is replaced by the following:
EN 7 EN
‘(31) ‘operator’ means any person that operates or controls an installation in a third
country, including a parent company controlling an installation in a third country;’;
(3) Article 5 is amended as follows:
(a) paragraph 1 is replaced by the following:
‘1. Any importer established in a Member State shall, prior to importing goods into
the customs territory of the Union, apply for the status of authorised CBAM
declarant (‘application for an authorisation’).
An indirect customs representative shall submit the application for authorisation
where the indirect customs representative is appointed by an importer in accordance
with Article 18 of Regulation (EU) No 952/2013 and agrees to act as authorised
CBAM declarant, including where that importer is subject to the derogation pursuant
to Article 2(3a).’;
(b) the following paragraph 1a is inserted:
‘1a. An importer shall submit the application for an authorisation in accordance with
paragraph 1 where the importer expects to exceed the threshold laid down in point 1
of Annex VII.’;
(c) paragraph 2 is replaced by the following:
‘2. Where an importer is not established in a Member State, the indirect customs
representative shall apply for the status of authorised CBAM declarant, including
where that importer is subject to the derogation pursuant to Article 2(3a).’;
(d) in paragraph 5, point (g) is replaced by the following:
‘(g) estimated monetary value, volume of imports of goods into the customs territory
of the Union by type of goods and information on the Member States of import, for
the calendar year during which the application is submitted, and for the following
calendar year;’;
(e) the following paragraph 7a is inserted:
‘7a. An authorised CBAM declarant may delegate the submission of CBAM
declarations as referred to in Article 6 to a person acting on behalf and in the name of
that declarant. The authorised CBAM declarant shall remain responsible for
performing the obligations set out with regard to authorised CBAM declarants in this
Regulation.’;
(4) Article 6 is amended as follows:
(a) paragraph 1 is replaced by the following:
‘1. By 31 August of each year, and for the first time in 2027 for the year 2026,
each authorised CBAM declarant shall use the CBAM registry referred to in Article
14 to submit a CBAM declaration for the preceding calendar year.’
(b) paragraph 2 is replaced by the following:
2. The CBAM declaration shall contain the following information:
(a) the total quantity of each type of goods imported during the preceding calendar
year, expressed in megawatt-hours for electricity and in tonnes for other goods,
including the imported goods below the threshold laid down in point 1 of Annex
VII);
EN 8 EN
(b) the total embedded emissions in the goods referred to in point (a) of this
paragraph, expressed in tonnes of CO2e emissions per megawatt-hour of electricity
or, for other goods, in tonnes of CO2e emissions per tonne of each type of goods,
calculated in accordance with Article 7 and verified, when actual emissions are used,
in accordance with Article 8;
(c) the total number of CBAM certificates to be surrendered, corresponding to the
total embedded emissions referred to in point (b) of this paragraph after the reduction
that is due on the account of the carbon price paid in a third country in accordance
with Article 9 and the adjustment necessary to reflect the extent to which EU ETS
allowances are allocated free of charge in accordance with Article 31;
(d) where applicable, copies of verification reports, issued by accredited verifiers,
under Article 8 and Annex VI.’;
(c) paragraph 6 is replaced by the following:
‘6. The Commission is empowered to adopt implementing acts concerning the
standard format of the CBAM declaration, including detailed information for each
installation and country of origin or other third country and type of goods to be
reported, which supports the totals referred to in paragraph 2 of this Article, in
particular as regards embedded emissions, the carbon price paid, the default carbon
price, the procedure for submitting the CBAM declaration via the CBAM registry,
and the arrangements for surrendering the CBAM certificates referred to in
paragraph 2, point (c), of this Article, in accordance with Article 22(1), in particular
as regards the process and the selection by the authorised CBAM declarant of
certificates to be surrendered. Those implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 29(2).’;
(5) Article 7 is amended as follows:
(a) paragraph 5 is replaced by the following:
‘5. The authorised CBAM declarant shall keep records of the information required to
calculate the embedded emissions in accordance with the requirements laid down in
Annex V. Those records shall be sufficiently detailed to enable verifiers accredited
pursuant to Article 18, where applicable, to verify the embedded emissions in
accordance with Article 8 and Annex VI and to enable the Commission and the
competent authority to review the CBAM declaration in accordance with Article
19(2).’;
(b) in paragraph 7, point (a) is replaced by the following:
‘(a) the application of the elements of the calculation methods set out in Annex IV,
including determining system boundaries of production processes, which shall be
limited to the system boundaries of production processes covered by the EU ETS,
and relevant input materials (precursors), emission factors, installation-specific
values of actual emissions and default values and their respective application to
individual goods, as well as lay down methods to ensure the reliability of data on the
basis of which the default values shall be determined, including the level of detail of
the data, and including further specification of goods that are to be considered as
‘simple goods’ and ‘complex goods’ for the purpose of point 1 of Annex IV. Those
implementing acts shall also specify the elements of evidence demonstrating that the
criteria required to justify the use of actual emissions for electricity consumed in the
production processes of goods for the purpose of paragraph 2 that are listed in points
5 and 6 of Annex IV are met;’;
EN 9 EN
(6) in Article 8, paragraph 1 is replaced by the following:
‘1. Where the embedded emissions are determined on the basis of actual emissions,
the authorised CBAM declarant shall ensure that the total embedded emissions
declared in the CBAM declaration submitted pursuant to Article 6 are verified by a
verifier accredited pursuant to Article 18, based on the verification principles set out
in Annex VI.’;
(7) Article 9 is replaced by the following:
‘Article 9
Carbon price paid in a third country
1. An authorised CBAM declarant may claim in the CBAM declaration a reduction
in the number of CBAM certificates to be surrendered in order to take into account
the carbon price paid in a third country for the declared embedded emissions. The
reduction may be claimed only if the carbon price has been effectively paid in a third
country. In such a case, any rebate or other form of compensation available in that
country that would have resulted in a reduction of that carbon price shall be taken
into account.
2. The authorised CBAM declarant shall keep records of the documentation required
to demonstrate that the declared embedded emissions were subject to a carbon price
in a third country that has been effectively paid as referred to in paragraph 1. The
authorised CBAM declarant shall in particular keep evidence related to any rebate or
other form of compensation available, in particular the references to the relevant
legislation of that country. The information contained in that documentation shall be
certified by a person that is independent from the authorised CBAM declarant and
from the authorities of the third country. The name and contact information of that
independent person shall appear on the documentation. The authorised CBAM
declarant shall also keep evidence of the actual payment of the carbon price.
3. The authorised CBAM declarant shall keep the records referred to in paragraph 2
until the end of the fourth year after the year during which the CBAM declaration has
been or should have been submitted.
3a. By way of derogation from paragraphs 1, 2 and 3, where the carbon price
effectively paid in a third country for the declared embedded emissions cannot be
determined, an authorised CBAM declarant may claim in the CBAM declaration a
reduction in the number of CBAM certificates to be surrendered in order to take into
account that carbon price for the declared embedded emissions, by reference to
yearly default carbon prices. In such a case, any rebate or other form of
compensation available in that country that would have resulted in a reduction of that
default carbon price shall be taken into account. The reduction may be claimed only
where a carbon price was set by the rules applicable in the third country and a yearly
default carbon price can be determined for that third country, including on a
conservative basis.
As from 2027, the Commission may, for third countries where carbon pricing rules
are in place, determine, publish the methodology and make available, in the CBAM
registry referred to in Article 14, the default carbon prices for those third countries,
based on the best available data from reliable, publicly available information and
information provided by those third countries. In such a case, any rebate or other
EN 10 EN
form of compensation available in that country that would have resulted in a
reduction of that default carbon price shall be taken into account.
4. The Commission is empowered to adopt implementing acts concerning the
conversion of the yearly average carbon price effectively paid in accordance with
paragraph 1, and of the yearly default carbon prices for the third countries, in
accordance with paragraph 3a, into a corresponding reduction of the number of
CBAM certificates to be surrendered. Those acts shall also concern the conversion of
the carbon price expressed in foreign currency into euro at the yearly average
exchange rate, the evidence required of the actual payment of the carbon price,
examples of any relevant rebate or other form of compensation referred to in
paragraph 1, the qualifications of the independent person referred to in paragraph 2
of this Article and the conditions to ascertain that person’s independence. Those
implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 29(2).’;
(8) Article 10 is replaced by the following:
‘Article 10
Registration of operators and of installations in third countries
1. The Commission shall, upon request by an operator of an installation located in a
third country, register the information on that operator and on its installation in the
CBAM registry referred to in Article 14.
2. The request for registration referred to in paragraph 1 shall contain the following
information to be included in the CBAM registry upon registration:
(a) the name, address, corporate or activity registration number, contact information
of the operator, and, if applicable, of its controlling entity including its parent
company together with the supporting documents;
(b) the location of each installation including the complete address and geographical
coordinates expressed in longitude and latitude, including six decimals;
(c) the main economic activity of the installation;
3. The Commission shall notify the operator of the registration in the CBAM
registry. The registration shall be valid for a period of five years from the date of its
notification to the operator of the installation.
4. The operator shall inform the Commission without delay of any changes in the
information referred to in paragraph 2 arising after the registration, and the
Commission shall update the relevant information in the CBAM registry.
5. The operator shall:
(a) determine the embedded emissions calculated in accordance with the methods set
out in Annex IV, by type of goods produced at the installation referred to in
paragraph 1 of this Article;
(b) ensure the embedded emissions referred to in point (a) of this paragraph are
verified in accordance with the verification principles set out in Annex VI by a
verifier accredited pursuant to Article 18;
EN 11 EN
(c) keep a copy of the verification report as well as records of the information
required to calculate the embedded emissions in goods in accordance with the
requirements laid down in Annex V for a period of four years after the verification
has been performed, and, where applicable, a copy of the documentation required to
demonstrate that the declared embedded emissions were subject to a carbon price in a
third country that has been effectively paid, until the end of the fourth year after the
year during which the independent person has certified the information contained in
that documentation in accordance with Article 9(2);
(d) determine, where applicable, the carbon price paid in a third country in
accordance with Article 9, and upload accompanying documentation and evidence.
6. The records referred to in paragraph 5, point (c), of this Article shall be
sufficiently detailed to enable the verification of the embedded emissions in
accordance with Article 8 and Annex VI, and to enable the review, in accordance
with Article 19, of the CBAM declaration made by an authorised CBAM declarant to
whom the relevant information was disclosed in accordance with paragraph 7 of this
Article.
7. An operator may disclose the information on the verification of embedded
emissions and the carbon price paid in a third country referred to in paragraph 5 of
this Article to an authorised CBAM declarant. The authorised CBAM declarant shall
be entitled to use that disclosed information in order to fulfil the obligation referred
to in Article 8.
8. The operator may, at any time, ask to be deregistered from the CBAM registry.
The Commission shall, upon such request, and after notifying the competent
authorities, deregister the operator and delete the information on that operator and on
its installation from the CBAM registry, provided that such information is not
necessary for the review of CBAM declarations that have been submitted. The
Commission may, after having given the operator concerned the possibility to be
heard and having consulted with the relevant competent authorities, also deregister
the information if the Commission finds that the information on that operator is no
longer accurate. The Commission shall inform the competent authorities of such
deregistration.’;
(9) the following Article 10a is inserted:
‘Article 10a
Registration of accredited verifiers
1. Where an accreditation is granted in accordance with Article 18, the accredited
verifier shall submit a request for registration in the CBAM registry to the competent
authority of the Member State in which the national accreditation body is established.
The request for registration shall be submitted within two months from the granting
of the accreditation. The competent authority shall register the information on
accredited verifiers in the CBAM registry.
2. The request for registration referred in paragraph 1 shall at least contain the
following information to be included in the CBAM registry upon registration:
(a) the name, and unique accreditation number of the verifier;
(b) the scopes of accreditation relevant for CBAM;
EN 12 EN
(c) the country of establishment of the verifier;
(d) the date of accreditation and expiry date of accreditation certificates relevant for
CBAM;
(e) any information on administrative measures imposed on the verifier relevant for
CBAM;
(f) copies of accreditation certificates.
3. The competent authority shall notify the verifier of the registration in the CBAM
registry.
4. The accredited verifier shall notify the competent authority of any changes to the
information referred to in paragraph 2 arising after the registration. The competent
authority shall ensure that the relevant information is duly updated in the CBAM
registry.
5. The verifier shall verify the embedded emissions in the CBAM registry upon
request from an operator pursuant to Article 10(5), point (b).
6. The competent authority shall deregister a verifier from the CBAM registry where
the verifier is no longer accredited pursuant Article 18 or where the verifier has not
complied with the obligation laid down in paragraph 4. The competent authority shall
notify the Commission and the other competent authorities of the deregistration. The
competent authority shall delete the information on that accredited verifier from the
CBAM registry provided that such information is not necessary for the review of
CBAM declarations that have been submitted.’;
(10) Article 11 is amended as follows:
(a) in paragraph 1, first subparagraph, the following sentence is added:
‘Each Member State shall ensure that the designated authority have all the powers
necessary for the performance of their functions and duties under this Regulation.’;
(b) the following paragraph 3 is added:
‘3. At the request of the Commission, competent authorities shall provide
information on the implementation of this Regulation to the Commission. This
information may be used by the Commission for the report pursuant to Article
30(6).’;
(11) Article 14 is amended as follows:
(a) paragraphs 3 and 4 are replaced by the following:
‘3. The CBAM registry shall contain, in a separate section of the registry, the
information about the operators and installations in third countries registered in
accordance with Article 10(2) and the information about the accredited verifiers
registered in accordance with Article 10a.
4. The information in the CBAM registry referred to in paragraphs 2 and 3 shall be
confidential, with the exception of the names, addresses, corporate or activity
registration numbers, contact information of the operators, the location of
installations in third countries and the information on accredited verifiers referred to
in Article 10a(2). An operator may choose not to have its name, address, corporate or
activity registration number, contact information and the location of its installations
made accessible to the public. The public information in the CBAM registry shall be
made accessible by the Commission in an interoperable format.’;
EN 13 EN
(b) paragraph 6 is replaced by the following:
‘6. The Commission shall adopt implementing acts concerning the infrastructure and
specific processes and procedures of the CBAM registry, including the risk analysis
referred to in Article 15, the electronic databases containing the information referred
to in paragraphs 2 and 3 of this Article, the procedures and the technical credentials
to perform the delegation referred to in Article 5(7a), the data of the accounts in the
CBAM registry referred to in Article 16, the transmission to the CBAM registry of
the information on the sale and repurchase of CBAM certificates referred to in
Article 20, and the cross-check of information referred to in Article 25(3). Those
implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 29(2).’;
(12) Article 17 is amended as follows:
(a) in paragraph 1, the second subparagraph is replaced by the following
subparagraphs:
‘Before granting the status of authorised CBAM declarant, the competent authority
may consult relevant competent authorities or the Commission via the CBAM
registry about the fulfilment of the necessary conditions and criteria for taking a
favourable decision. The consultation shall take place within the period prescribed
for the decision concerned and shall not exceed 15 calendar days.
The consultation procedure may also be applied for the purposes of re-assessment
and monitoring of a decision.’;
(b) in paragraph 8, the second subparagraph is replaced by the following:
‘Before revoking the status of authorised CBAM declarant, the competent authority
shall give the authorised CBAM declarant the possibility to be heard. The competent
authority may consult relevant competent authorities or the Commission via the
CBAM registry on the conditions and criteria for the revocation. The consultation
shall not exceed 15 calendar days.’;
(c) in paragraph 10, point (e) is replaced by the following:
‘(e) the specific deadlines, scope and format of the consultation procedure referred to
in paragraphs 1 and 8 of this Article.’;
(13) in Article 19(3), the second subparagraph is replaced by the following:
‘The Commission shall also facilitate the exchange of information with competent
authorities about fraudulent activities, the conclusions pursuant to Article 25a and the
penalties imposed in accordance with Article 26.’;
(14) Article 20 is amended as follows:
(a) paragraph 1 is replaced by the following:
‘1. From 1 February 2027, a Member State shall sell CBAM certificates on a
common central platform to authorised CBAM declarants established in that Member
State.’;
(b) paragraph 3 is replaced by the following:
‘3. The information on the sale and repurchase of CBAM certificates in the common
central platform shall be transferred to the CBAM registry at the end of each working
day.’
EN 14 EN
(c) paragraph 6 is replaced by the following:
‘6. The Commission is empowered to adopt delegated acts in accordance with
Article 28 supplementing this Regulation by further specifying the timing,
administration and other aspects related to the management of the sale and
repurchase of CBAM certificates, seeking coherence with the procedures of
Commission Delegated Regulation (EU) 2023/2830*
.
*Commission Delegated Regulation (EU) 2023/2830 of 17 October 2023 supplementing Directive 2003/87/EC of the European
Parliament and of the Council by laying down rules on the timing, administration and other aspects of auctioning of greenhouse
gas emission allowances (OJ L, 2023/2830, 20.12.2023, ELI: http://data.europa.eu/eli/reg_del/2023/2830/oj).’;
(15) Article 21 is amended as follows:
(a) in paragraph 1, the first subparagraph is replaced by the following:
‘The Commission shall calculate the price of CBAM certificates as the average of the
closing prices of EU ETS allowances on the auction platform, in accordance with the
procedures laid down in Delegated Regulation (EU) 2023/2830, for each calendar
week.’;
(b) the following paragraph 1a is inserted:
‘1a. By way of derogation from paragraph 1, for the year 2026, the Commission shall
calculate the price of CBAM certificates that corresponds to the embedded emissions
declared in accordance with Article 6(2), point (b), in 2027 as the quarterly average
of the closing prices of EU ETS allowances on the auction platform, in accordance
with the procedures laid down in Delegated Regulation (EU) 2023/2830, of the
quarter of importation of the goods to which those emissions correspond.]’;
(c) paragraph 3 is replaced by the following:
‘3. The Commission is empowered to adopt implementing acts on the application of
the methodology provided for in paragraphs 1 and 1a to calculate the price of CBAM
certificates and the practical arrangements for the publication of that price. Those
implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 29(2).’;
(16) Article 22 is amended as follows:
(a) in paragraph 1, the first sentence is replaced by the following:
‘By 31 August of each year, and for the first time in 2027 for the year 2026, the
authorised CBAM declarant shall surrender via the CBAM registry a number of
CBAM certificates that corresponds to the embedded emissions declared in
accordance with Article 6(2), point (c), and verified in accordance with Article 8, for
the calendar year preceding the surrender.’;
(b) paragraph 2 is replaced by the following:
‘2. From the first quarter of the year 2027, the authorised CBAM declarant shall
ensure that the number of CBAM certificates on its account in the CBAM registry at
the end of each quarter corresponds to at least 50 % of the embedded emissions in all
goods it has imported since the beginning of the calendar year, taking into account
the adjustment for free allocation as referred to in Article 31, determined by
reference to any of the following:
EN 15 EN
(a) default values in accordance with the methods set out in Annex IV without the
mark-up as referred to in Section 4.1 of that Annex;
(b) the number of CBAM certificates surrendered in accordance with paragraph 1 for
the calendar year preceding the surrender, provided that the customs declaration for
the import of goods refers to the same goods by CN code and countries of origin as
the CBAM declaration submitted for the preceding calendar year.’;
(c) the following paragraph 2a is inserted:
‘2a. The authorised CBAM declarant shall comply with the obligation laid out in
paragraph 2 at the end of the quarter where the authorised CBAM declarant exceeds
the threshold laid down in Annex VII.’;
(17) Article 23 is amended as follows:
(a) in paragraph 1, second subparagraph, the second sentence is replaced by the
following:
‘The authorised CBAM declarant shall submit the repurchase request by 30
[November] of each year during which CBAM certificates were surrendered.’;
(b) paragraph 2 is replaced by the following:
‘2. The number of CBAM certificates purchased during a calendar year and subject
to repurchase as referred to in paragraph 1 shall be limited to the total number of
CBAM certificates needed to fulfil the obligations set out in Article 22(2) during that
calendar year.’;
(c) the following paragraph 2a is inserted:
‘2a. By way of derogation from paragraph 2, the number of CBAM certificates that
corresponds to the embedded emissions declared in accordance with Article 6(2) in
2027 for the year 2026 which have not been surrendered in accordance with Article
22(1) shall be subject to repurchase as referred to in paragraph 1 only in 2027.’;
(18) Article 24 is amended as follows:
(a) in the first paragraph, the first sentence is replaced by the following:
‘On 1 October of each year, the Commission shall cancel any CBAM certificates that
were purchased during the year before the previous calendar year and that remained
in the account of an authorised CBAM declarant in the CBAM registry. Those
CBAM certificates shall be cancelled without any compensation’;
(b) the following paragraph is added:
‘By way of derogation from the first paragraph, on 1 [December] 2027, the
Commission shall cancel any CBAM certificates that correspond to the embedded
emissions declared in accordance with Article 6(2) in 2027 for the year 2026. Those
CBAM certificates shall be cancelled without any compensation.’;
(19) Article 25 is amended as follows:
(a) in paragraph 2, the second sentence is replaced by the following:
‘That information shall include the EORI number or the form of identification
declared in accordance with Article 6(2) of Delegated Regulation (EU) 2015/2446,
and the name, address and contact information, of the importer or of the authorised
CBAM declarant as well as the CBAM account number of the authorised CBAM
EN 16 EN
declarant, the eight-digit CN code of the goods, the quantity, the country of origin,
the date of the customs declaration and the customs procedure.’;
(b) paragraph 3 is replaced by the following:
‘3. The Commission shall communicate the information referred to in paragraph 2 of
this Article to the competent authority of the Member State where the authorised
CBAM declarant or the importer is established and shall, for each CBAM declarant,
cross-check that information with the data in the CBAM registry pursuant to Article
14.’;
(c) paragraph 4 is replaced by the following:
‘4. The customs authorities may communicate, in accordance with Article 12(1) of
Regulation (EU) No 952/2013, confidential information acquired by the customs
authorities in the course of performing their duties, or provided to the customs
authorities on a confidential basis, to the Commission and to the competent authority
of the Member State that has granted the status of the authorised CBAM declarant or
to the competent authority of the Member State where the importer is established.’;
(20) the following Article 25a is inserted:
‘Article 25a
Monitoring and enforcement of the threshold laid down in point 1 of Annex VII
1. The competent authorities and the Commission shall monitor the importation of
goods listed in Annex l and the corresponding threshold laid down in point 1 of
Annex VII.
The Commission shall periodically and automatically exchange with competent
authorities information necessary for the monitoring of importers in the CBAM
registry.
2. Where the Commission considers, based on a preliminary assessment, that an
importer has exceeded the threshold, it shall communicate the information on which
the preliminary assessment is based to the competent authority of the Member State
where the importer is established.
The competent authority may request from the importer, the customs authorities or
the Commission documentary evidence necessary for assessing whether the importer
has exceeded the threshold.
3. Where the competent authority concludes that an importer has exceeded the
threshold, it shall inform the importer of the decision. The decision shall include the
reasons for the decision, as well as information about the right to appeal, the
penalties applied in accordance with Article 26(2), and a request to apply, where
necessary, for authorisation in accordance with Article 5. The competent authority
shall also notify the customs authorities and the Commission of the decision via the
CBAM registry.
The submission of an appeal shall not suspend the implementation of the disputed
decision.
4. In concluding whether an importer has exceeded the threshold in accordance with
paragraph 3, a competent authority shall disregard a practice or an arrangement or a
series thereof which has been put into place for the main purpose or one of the main
EN 17 EN
purposes of falling below the threshold and are therefore, having regard to all
relevant facts and circumstances, not genuine.
A practice or an arrangement or a series thereof shall be regarded as not genuine
where they are not put into place for valid commercial reasons which reflect
economic reality. All importers involved in such a practice or arrangement shall be
jointly liable for the penalty applied in accordance with Article 26(2).
In such cases, the competent authority shall consider that the importer has been
involved in a serious infringement of this Regulation for the purpose of Article 17(2),
point (a).
5. The Commission shall periodically set out specific risk factors and points for
attention, based on a risk analysis in relation to the threshold, taking into account
information contained in the CBAM registry, data communicated by customs
authorities in accordance with Article 25, and other relevant information sources,
including irregularities identified as a result of the controls carried out in accordance
with Article 15(1).’;
(21) Article 26 is amended as follows:
(a) the following paragraph 1a is inserted:
‘1a. The competent authority may decrease the amount of the penalty calculated in
accordance with paragraph 1, considering one or more of the following factors:
a) the extent of unreported information;
b) the level of cooperation and readiness of the authorised CBAM declarant to
comply with requests for information;
c) the unintentional nature of the behaviour of the authorised CBAM declarant;
d) the past compliance of the authorised CBAM declarant.’;
(b) paragraphs 2 and 3 are replaced by the following:
‘2. Where a person other than an authorised CBAM declarant introduces goods into
the customs territory of the Union without complying with the obligations under this
Regulation, that person shall be held liable for the payment of a penalty. Such a
penalty shall be effective, proportionate and dissuasive and shall, depending in
particular on the duration, gravity, scope, intentional nature and repetition of such
non-compliance and the level of cooperation of the person with the competent
authority, be an amount from three to five times the penalty referred to in paragraph
1, applicable in the year of introduction of the goods, for each CBAM certificate that
the person has not surrendered. The payment of the penalty shall release the person
from the obligation to submit a CBAM declaration or surrender certificates.
3. The payment of the penalty in accordance with paragraph 1 shall not release the
authorised CBAM declarant from the obligation to surrender the outstanding number
of CBAM certificates in a given year.’;
(22) in Article 27(2), point (b) is replaced by the following:
‘(b) artificially splitting imports, including via non-genuine arrangements, to avoid
exceeding the threshold referred to in Article 2(3a).’;
(23) Article 28 is amended as follows:
(a) paragraphs 2 and 3 are replaced by the following:
EN 18 EN
‘2. The power to adopt delegated acts referred to in Articles 2(3a), 2(10), 2(11),
18(3), 20(6) and 27(6) shall be conferred on the Commission for a period of five
years from [date of publication]. The Commission shall draw up a report in respect of
the delegation of power not later than nine months before the end of the five-year
period. The delegation of power shall be tacitly extended for further periods of an
identical duration, unless the European Parliament or the Council opposes such
extension not later than three months before the end of each period.
3. The delegation of power referred to in Articles 2(3a), 2(10), 2(11), 9(5), 18(3),
20(6) and 27(6) may be revoked at any time by the European Parliament or by the
Council.’;
(b) paragraph 7 is replaced by the following:
‘7. A delegated act adopted pursuant to Articles 2(3a), 2(10), 2(11), 9(5), 18(3),
20(6) or 27(6) shall enter into force only if no objection has been expressed either by
the European Parliament or by the Council within a period of two months of
notification of that act to the European Parliament and to the Council or if, before the
expiry of that period, the European Parliament and the Council have both informed
the Commission that they will not object. That period shall be extended by two
months at the initiative of the European Parliament or of the Council.’;
(24) in Article 30(6), point (b), the following point is added:
‘(v) the application of the threshold laid down in point 1 of Annex VII.’;
(25) Article 36(2) is amended as follows:
(a) point (b) is replaced by the following:
‘Article 2(2) and Articles 4, 6 to 9, 15 and 19, Articles 21 to 22(1), Article 22(3),
Articles 27 and 31 shall apply from 1 January 2026.’;
(b) the following points are added:
(c) Article 22(2) shall apply as from 1 January 2027;
(d) Article 20(1), (3), (4) and (5) shall apply as from 1 February 2027.’.;
(26) in Annex I, the CN code “2507 00 80 – Other kaolinic clays” is replaced by ‘2507 00
80 – Other kaolinic clays [except non-calcined kaolinic clays]’;
(27) in Annex II, the following table is added:
‘[Electricity
CN code Greenhouse gas
2716 00 00 – Electrical
energy
Carbon dioxide
]‘;
(28) Annex IV is amended in accordance with Annex I to this Regulation.
in section 2, point (k), of Annex VI, point (iii) is replaced by the following (iii) the
identification of the installations where the input material (precursor) has been
produced and the actual emissions from the production of that material;’;
(29) a new Annex VII as set out in Annex II to this Regulation is added:
EN 19 EN
Article 2
Entry into force
This Regulation shall enter into force on the third day following that of its publication in the
Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament For the Council
The President The President
EN 20 EN
LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE................................................. 3
1.1. Title of the proposal/initiative...................................................................................... 3
1.2. Policy area(s) concerned .............................................................................................. 3
1.3. Objective(s).................................................................................................................. 3
1.3.1. General objective(s) ..................................................................................................... 3
1.3.2. Specific objective(s)..................................................................................................... 3
1.3.3. Expected result(s) and impact...................................................................................... 3
1.3.4. Indicators of performance ............................................................................................ 3
1.4. The proposal/initiative relates to:................................................................................. 4
1.5. Grounds for the proposal/initiative .............................................................................. 4
1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for
roll-out of the implementation of the initiative............................................................ 4
1.5.2. Added value of EU involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this section 'added value of EU involvement' is the value resulting
from EU action, that is additional to the value that would have been otherwise
created by Member States alone. ................................................................................. 4
1.5.3. Lessons learned from similar experiences in the past.................................................. 4
1.5.4. Compatibility with the multiannual financial framework and possible synergies with
other appropriate instruments....................................................................................... 5
1.5.5. Assessment of the different available financing options, including scope for
redeployment................................................................................................................ 5
1.6. Duration of the proposal/initiative and of its financial impact .................................... 6
1.7. Method(s) of budget implementation planned............................................................. 6
2. MANAGEMENT MEASURES................................................................................... 8
2.1. Monitoring and reporting rules .................................................................................... 8
2.2. Management and control system(s) ............................................................................. 8
2.2.1. Justification of the budget implementation method(s), the funding implementation
mechanism(s), the payment modalities and the control strategy proposed.................. 8
2.2.2. Information concerning the risks identified and the internal control system(s) set up
to mitigate them............................................................................................................ 8
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between
the control costs and the value of the related funds managed), and assessment of the
expected levels of risk of error (at payment & at closure)........................................... 8
2.3. Measures to prevent fraud and irregularities................................................................ 9
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE............ 10
EN 21 EN
3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s)
affected....................................................................................................................... 10
3.2. Estimated financial impact of the proposal on appropriations................................... 12
3.2.1. Summary of estimated impact on operational appropriations.................................... 12
3.2.1.1. Appropriations from voted budget............................................................................. 12
3.2.1.2. Appropriations from external assigned revenues....................................................... 17
3.2.2. Estimated output funded from operational appropriations......................................... 22
3.2.3. Summary of estimated impact on administrative appropriations............................... 24
3.2.3.1. Appropriations from voted budget .............................................................................. 24
3.2.3.2. Appropriations from external assigned revenues....................................................... 24
3.2.3.3. Total appropriations ................................................................................................... 24
3.2.4. Estimated requirements of human resources.............................................................. 25
3.2.4.1. Financed from voted budget....................................................................................... 25
3.2.4.2. Financed from external assigned revenues ................................................................ 26
3.2.4.3. Total requirements of human resources ..................................................................... 26
3.2.5. Overview of estimated impact on digital technology-related investments................ 28
3.2.6. Compatibility with the current multiannual financial framework.............................. 28
3.2.7. Third-party contributions ........................................................................................... 28
3.3. Estimated impact on revenue ..................................................................................... 29
4. DIGITAL DIMENSIONS.......................................................................................... 29
4.1. Requirements of digital relevance.............................................................................. 30
4.2. Data ............................................................................................................................ 30
4.3. Digital solutions ......................................................................................................... 31
4.4. Interoperability assessment........................................................................................ 31
4.5. Measures to support digital implementation.............................................................. 32
EN 22 EN
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1. Title of the proposal/initiative
Carbon Border Adjustment Mechanism
1.2. Policy area(s) concerned
Climate policy
1.3. Objective(s)
1.3.1. General objective(s)
In light of the EU’s increased climate ambitions, the introduction of a CBAM has the
overarching objective of addressing climate change by reducing GHG emissions in
the EU and globally.
The amending proposal aims at simplifying the compliance burden on importers of
CBAM goods.
1.3.2. Specific objective(s)
The overarching objective of addressing climate change is further articulated in a
number of specific objectives, namely: (i) Addressing the risk of carbon leakage
under increased EU ambition. (ii) Contributing to the provision of a stable and secure
policy framework for investments in low or zero carbon technologies. (iii) Ensuring
that domestic production and imports are subject to similar level of carbon pricing.
(iv) Encouraging producers in third countries who export to the EU to adopt low
carbon technologies. (v) Ensuring that the measure is effective, minimising the risk
of being circumvented, thus providing environmental integrity. (vi) Ensuring a
proportionate administrative burden for businesses and public authorities in the
application of the measure.
The amending proposal aims at: (i) reducing administrative burden; (ii) improving
the functioning of CBAM.
1.3.3. Expected result(s) and impact
Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.
The introduction of a CBAM envisages a reduction in greenhouse gas emissions both
in the EU-27 and in the rest of the world in the sectors covered by CBAM. The
CBAM is also expected to reduce the risks of carbon leakage, therefore gradually
replacing the free allocation of allowances under the EU ETS.
As regards economic impacts, the modelling conducted before the adoption of the
CBAM Regulation indicated that the introduction of a CBAM and other measures
needed to reach the EU’s increased climate ambitions could lead to a GDP
contraction for the EU 27 by 0.22 % to 0.23 % in 2030. Impact on the investment
side is modest. On the consumption side CBAM appears to have a slightly stronger
negative effect relative to the scenario of increased climate ambition and no CBAM.
By effectively reducing carbon leakage, the introduction of a CBAM leads to a
reduction in imports in the EU 27. Overall, the social impacts of CBAM are limited.
Administrative impacts on the Commission, businesses national authorities, are
expected. Altogether, compliance costs for businesses and authorities, while
EN 23 EN
significant, are expected to be proportionate, and manageable in light of the
environmental benefits of the measure. While revenue generation is not an objective
of CBAM is expected to generate additional revenue, which for 2030 is estimated at
above EUR [2.1 billion to be updated].
The amending proposal expects to:
(i) reduce the number of entities subject to CBAM obligations while preserving the
environmental integrity of the mechanism and its capacity to achieve its climate
objective;
(ii) enhance the functioning of the mechanism by simplifying and streamlining
processes and procedures. The proposal will make it easier for importers of goods
into the Union to comply with CBAM reporting obligations by simplifying some of
those CBAM reporting requirements which relate to complex calculations or rely on
hazardous data collection processes which hamper effective CBAM implementation.
In addition, the proposal will also strengthen the monitoring and supervision of
CBAM. It will increase the ability of the Commission to process data and exchange
relevant information with national authorities to ensure that the utility of the
information reported by stakeholders is maximised. It will also enable both the
Commission to better detect risks and national authorities to be better equipped to
take appropriate actions where needed.
1.3.4. Indicators of performance
Specify the indicators for monitoring progress and achievements.
Exempt from CBAM obligations importers of small quantities of CBAM goods
Optimisation of processes to increase effectiveness and reduce administrative burden
1.4. The proposal/initiative relates to:
 a new action
 a new action following a pilot project / preparatory action18
 the extension of an existing action
 a merger or redirection of one or more actions towards another/a new action
1.5. Grounds for the proposal/initiative
1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for
roll-out of the implementation of the initiative
The CBAM was introduced from October 2023. A simplified system of the CBAM
scheme is currently in place until the end of 2025. Specifically, a transitional period
(dry-run for data collection) currently applies to facilitate the smooth roll out of the
CBAM and allow traders and importers to adjust.
Commission services are in charge of implementing and enforcing CBAM both
during the transition period (2023-2025) and will also be during the definitive phase
(from 2026).
18
As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.
EN 24 EN
During the transition period this implies collecting information from importers of
CBAM goods in the EU on the embedded GHG emissions of these goods and
analysing data.
The Carbon Border Adjustment Mechanism (CBAM) calls for a progressive
introduction of the different functions necessary for its effective implementation.
Firstly, a number of reports and reviews need to be prepared in order to facilitate the
financial obligation to be set in place. Recognizing this, the CBAM regulation
foresees its implementation in two consecutive periods: the Transitional Period from
October 2023 until end of 2025 and the Definitive Period as from early 2026.
During the Transitional Period the obligation placed on importers and the EU
Authorities (customs) is limited to the filing of the quarterly CBAM reports in
addition of the Import declarations.
During the transitional period, transitional information management system (CBAM
Transitional Period – CBAM TP) were put in place to support the submission and
collection of quarterly reports, as well as the assimilation of data from each report
into an aggregated database, to allow for their effective analysis for the purposes of
reporting in line with the provisions of the Regulation.
Additionally, during the transitional period, customs authorities are tasked with
informing customs declarants of the obligation to report information, so as to
contribute to the gathering of information as well as to the awareness on the need to
request the status of authorised declarant when applicable (before the first
importation of CBAM goods from 1 January 2026).
The Definitive Period is planned to start on the 01.01.26 for the core CBAM
declaration and certificates management services as listed here and one year earlier
for authorised declarants registration and processing of CBAM authorisations by the
competent authorities:
- importers are only entitled to import these goods after they have been granted an
authorisation (except in case of the derogation proposed in the amending Regulation)
by competent authorities, or if they would appoint a representative authorised as
CBAM declarant. Customs authorities should not allow the importation of CBAM
goods without a authorised CBAM declarant being involved. Furthermore, the
customs authorities may carry out checks on the goods, including with respect to the
identification of the authorised CBAM declarant, the eight-digit CN code, the
quantity and the country of origin of the imported goods, the date of declaration and
the customs procedure. The Commission should include the risks relating to CBAM
in the design of the common risk criteria and standards pursuant to Article 50 of
Regulation (EU) No 952/2013
- The CBAM should be based on a declarative system where an authorised CBAM
declarant, who may act on its own behalf or represent one or more importers, submits
annually a declaration of the embedded emissions in the goods imported to the
customs territory of the Union and surrenders a number of CBAM certificates
corresponding to those declared emissions.
- An authorised CBAM declarant should be allowed to claim a reduction in the
number of CBAM certificates to be surrendered corresponding to the carbon price
already effectively paid for those emissions in other jurisdictions. The amending
Regulation proposes to introduce a default carbon price which would allow
EN 25 EN
declarants to claim a deduction where it cannot be demonstrated that a carbon price
has been effectively paid.
- The embedded declared emissions should be verified by a person accredited by an
EU national accreditation body where actual emissions are declared.
- The CBAM central system should allow operators of production installations in
third countries to register in the CBAM registry and to make their verified embedded
GHG emissions from production of goods available to authorised CBAM declarants.
The Commission should manage the CBAM registry containing data on the
authorised CBAM declarants, operators and installations in third countries. The
amending Regulation proposes to allow accredited verifiers to access the registry to
improve the reliability of emission data shared by operators with declarants through
the registry.
- To reduce the risk of carbon leakage the Commission should take action to address
practices of circumvention
- For the sale and re-purchase of CBAM certificates a common central platform
should be established. For the purpose of oversight of the transactions on the
common central platform, the Commission should facilitate the exchanges of
information and the cooperation between competent authorities, and between those
authorities and the Commission. Additionaly, a swift flow of information between
the common central platform and the CBAM registry should be establised.
- The Commission should carry out risk-based controls and should review the
content of the CBAM declarations accordingly. For enforcement purposes, Member
States may also carry out reviews of individual CBAM declarations. The conclusions
of the reviews of individual CBAM declarations should be shared with the
Commission and should be made available to other competent authorities in the
CBAM registry.
- Member States should be responsible for the correct establishment and collection of
revenues arising from the application of this Regulation.
Therefore, during the definitive period the number of tasks attributed to the EC
increase drastically, requiring an increase in staffing needs. The tasks carried out by
this team will include the supervision of authorisation of CBAM declarants made by
MS competent authorities, the management of the central database and central
registry, coordination and information exchange with MS competent authorities,
review of declarations and oversight of the external platform and lastly, tasks
requiring legal competencies such as litigation and recovery and financial
responsibility oversight. The structure of the team is further defined below.
During the definitive period the Commission will be in charge of the majority of the
tasks resulting from the CBAM regulation.
CBAM IT Budget
The CBAM Budget to be engaged/ committed for the period 2023-2027 have been
assessed at 101,74 M€.The CBAM IT budget encompasses Analysis & Development
services, Deployment services, Operations services, cloud services and/or on
premises hardware and software licenses for the Transitional and Definitive CBAM
System as detailed below :
- The CAPEX cost has been estimated based on the actual budget engaged and the
budget authorised by EC IT Corporate Governance in the form of approved Vision
EN 26 EN
Documents for the following past projects of DG TAXUD IT projects, due to their
similarities in terms of IT Architecture Model: CDS, CRMS2, SURV3, REX,
CSRD2, EBTI, Customs Trans-European Declaration Management Systems
developed and operated by DG TAXUD.
- The OPEX cost has been assessed on the basis of the current annual infrastructure
and operational costs of DG TAXUD, their provisions for IT infrastructure, IT
Support and Service Desk activities for the production systems delivered by the
projects referenced above.
- The pricing is based on the current Framework Contracts pricing in place.
In the IT Policy budget line, the budget of the joint procurement between the COM
and MS of the platform for buying and selling of certificates for managing operations
is not included.
The CBAM team would consist of 90 EC staff (including 15 IT staff) in 2027.
The amending Regulation proposes to introduce rationalisations of administrative
requirements, including reporting. Since those requirements were introduced by
Union Law, their rationalization is also best done at EU level to ensure legal
certainty and consistency of reporting. This change corresponds to additional IT cost
of 18,95 M€ for the period of 2025-2027. This will ensure a level playing field for
companies and authorities across the Union, which will be benefiting from the
rationalisation of reporting requirements arising from this proposal.
Tasks attributed to the
European Commission
and shared with MS for
the implementation of
CBAM
Number of staff required to carry out said task
Transitio
nal
Period
(2023)
Transitio
nal
Period
(2024)
Transitio
nal
Period
(2025)
Definiti
ve
Period
(2026)
Definiti
ve
Period
(2027)
Authorisation of
CBAM declarants
0 0 1 2 2
Management and
registration of
information in the
central database of
installations outside
the EU
0 0 0 3 5
Management of
central registry
including accounts
(surrendering of
certificates, including
80% rule,
cancellation)
0 0 0.5 3 5
Coordination and
information exchange
between the
competent authorities
and customs
0 1 1 1 1
Check and control for
irregularities
0 0 0 3 5
EN 27 EN
Risk-based controls
and maintenance of
an independent
transaction log and
inform MS of
irregularities
Oversight and review
of declarations and
emission reports:
1. Oversight of the
automated step
of checking
through the
declarations
2. Review of
declarations
(embedded
emissions
calculations,
obligations of
certificates,
deduction of
carbon price
paid abroad
and FA)
+ Assessment of
unsubmitted CBAM
certificates
0 0 0 8 25
3. Review of
emissions reports
0 0 0 10 10
Setting up risk-based
factors for the review
of the declarations
0 1 1 1 1
Penalties 0 0 0 2 2
Oversight, monitoring
and management of
the external platform
for buying and selling
and calculation of
price of CBAM
certificates
0 0 0 2 2
Review and reporting
obligations by the end
of the transitional
period including
assessment of
transitional period
0 7 13.5 0 0
EN 28 EN
reports
Reports to be drafted 3 3 3 3 3
Litigation and recovery 3 3 3 6 8
Financial responsibility
oversight
Contracts and HR
Drafting of secondary
legislation
(Implementing and
Delegated Acts)
3 3 3 3 3
Outreach and Training 2 2 2 2 2
Methodology for
calculating embedded
emissions
1 1 1 1 1
Total number of staff
CBAM team
(excluding IT)
12 21 29 50 75
The breaking down of total staff, including IT staff, from 2023 to 2027 would be the
following:
Year 2023 2024 2025 2026 2027
No of Total
Resources
20 33 44 65 90
CBAM
team
12 21 29 50 75
IT CBAM
team
8 12 15 15 15
The strategic importance, the magnitude and complexity of the CBAM IT project
require a dedicated CBAM IT team to be established to manage the overall project
implementation and operations.
The CBAM IT team consists of 15 members of specialised IT profiles for defining
and managing CBAM IT System Architecture and Project Organisation and
planning, the activities in terms of development, deployment, the organisation of the
Service Model, the management of operations and support in front of Trade, COM
services, climatic and Customs authorities, in parallel of the Transitional and
definitive CBAM IT systems.
The CBAM IT team would consist of 15 EC staff structured as presented in the graph
below:
EN 29 EN
The proposed plan of deploying the CBAM IT team is the following:
Year 2023 2024 2025 2026 2027
No of
Resources
8 12 15 15 15
AD 4 5 5 5 5
CA 4 7 10 10 10
1.5.2. Added value of EU involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this section 'added value of EU involvement' is the value resulting
from EU action, that is additional to the value that would have been otherwise
created by Member States alone.
Reasons for action at EU level (ex-ante) Reducing GHG emissions is fundamentally
a trans-boundary issue that requires effective action at the largest possible scale. The
EN 30 EN
EU as a supranational organisation is well-placed to establish effective climate policy
in the EU, like it has done with the EU ETS.
There exists already a harmonised carbon price at EU level. This consists of the price
resulting from the EU ETS for the sectors covered by the system. The only
meaningful way to ensure equivalence between the carbon pricing policy applied in
the EU’s internal market and the carbon pricing policy applied on imports is to take
action at the level of the Union.
Any initiative needs to be implemented in a way that provides importers, regardless
of country of origin and port of entry or destination within the EU, with uniform
conditions and incentives for GHG emission reductions that are equivalent to those
of domestic producers. The single effective way to do this is by taking action at the
level of the EU.
The proposed simplification introduced by the amending Regulation is best done at
EU level to ensure legal certainty and consistency. This will ensure a level playing
field for companies and authorities across the Union, which will be benefiting from
the rationalisation of reporting requirements arising from this proposal.
Expected generated EU added value (ex-post) In parallel to the EU ETS,
reduction of GHG emissions and protection against the risk of carbon leakage in the
EU single market can be established most adequately at the EU level. Additionally,
the need for minimal administrative costs is best achieved by establishing consistent
rules for the entire single market, further underlining the added value of an
intervention at the EU level.
The public consultation has confirmed the added value of taking action on the
CBAM at the EU level. In particular, stakeholders agree that an EU CBAM is needed
due to existing differences of ambition between the EU and the rest of the world and
in order to support the global climate efforts. In addition, in view of the EU’s
position in international trade, if it introduces a CBAM the environmental effect on
international climate ambitions will be most effective as a potential example to
follow.
Thus, the objective of reducing emissions and climate neutrality requires – without
equally ambitious global policies – action by the European Union.
1.5.3. Lessons learned from similar experiences in the past
The CBAM is a new mechanism. The preferred option in the Impact Assessment
draws from the EU Emissions Trading System and aims at replicating some of its
features.
If sufficient ressources are not made available to enforce CBAM correctly, there is a
serious risk that businesses will avoid CBAM.
The amending proposal relies on the experience gained in implementing CBAM
since the mechanism started to apply in its transitional phase on 1 October 2023.
1.5.4. Compatibility with the multiannual financial framework and possible synergies with
other appropriate instruments
In the interinstitutonal agreement of 16 December 2020, signed in the context of the
negotiations, the European Parliament, the Council and the Commission agreed that
"the institutions will work towards introducing sufficient new own resources with a
view to covering an amount corresponding to the expected expenditure related to the
EN 31 EN
repayment" of NextGenerationEU. As part of the mandate received, the Commission
was invited to put forward a proposal for a CBAM in the first semester of 2021.
The final agreement by co-legislators foresees that most of the implementation and
enforcement of CBAM will be the responsibility of the Commission. Therefore, in
order to ensure the correct deployment of the proposal the appropriate financing
means need to be made available within the current MFF.
The amending proposal is consistent with the objective of the better regulation
agenda, as it will strengthen the Commission’s ability to carry out its general
supervision of CBAM, while reducing administrative the costs (notably for small
importers, but also for Member States’ authorities) that would otherwise be incurred
in collecting the information through other means.
1.5.5. Assessment of the different available financing options, including scope for
redeployment
Implementation costs for CBAM will be financed by the EU budget.
EN 32 EN
1.6. Duration of the proposal/initiative and of its financial impact
 limited duration
–  in effect from [DD/MM]YYYY to [DD/MM]YYYY
–  financial impact from YYYY to YYYY for commitment appropriations and
from YYYY to YYYY for payment appropriations.
 unlimited duration
– Implementation with a start-up period from YYYY to YYYY,
– followed by full-scale operation.
1.7. Method(s) of budget implementation planned19
 Direct management by the Commission
–  by its departments, including by its staff in the Union delegations;
–  by the executive agencies
 Shared management with the Member States
 Indirect management by entrusting budget implementation tasks to:
–  third countries or the bodies they have designated
–  international organisations and their agencies (to be specified)
–  the European Investment Bank and the European Investment Fund
–  bodies referred to in Articles 70 and 71 of the Financial Regulation
–  public law bodies
–  bodies governed by private law with a public service mission to the extent that
they are provided with adequate financial guarantees
–  bodies governed by the private law of a Member State that are entrusted with
the implementation of a public-private partnership and that are provided with
adequate financial guarantees
–  bodies or persons entrusted with the implementation of specific actions in the
common foreign and security policy pursuant to Title V of the Treaty on
European Union, and identified in the relevant basic act
– bodies established in a Member State, governed by the private law of a
Member State or Union law and eligible to be entrusted, in accordance with
sector-specific rules, with the implementation of Union funds or budgetary
guarantees, to the extent that such bodies are controlled by public law bodies or
by bodies governed by private law with a public service mission, and are provided
with adequate financial guarantees in the form of joint and several liability by the
controlling bodies or equivalent financial guarantees and which may be, for each
action, limited to the maximum amount of the Union support.
Comments
19
Details of budget implementation methods and references to the Financial Regulation may be found on
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx.
EN 33 EN
N/A
EN 34 EN
2. MANAGEMENT MEASURES
2.1. Monitoring and reporting rules
The Commission will ensure that arrangements are in place to monitor and evaluate
the functioning of the CBAM and evaluate it against the main policy objectives.
Before the end of the transitional period at the end of 2025 and every two years
thereafter, the Commission will publish comprehensive assessments of the
functioning of the CBAM, including its governance. The 2025 report will also
review the scope of the CBAM to examine the possibility of extending it to cover
emissions of other EU ETS sectors at risk of carbon leakage, products further down
the value chain as well indirect emissions for all sectors. For this, it is necessary to
monitor the effect of CBAM on the shortlisted sectors.
2.2. Management and control system(s)
2.2.1. Justification of the budget implementation method(s), the funding implementation
mechanism(s), the payment modalities and the control strategy proposed
A significantly centralised set-up allows a very uniform and efficient implementation
of CBAM across the EU including in Member states with more limited administrative
capacity on climate issues. The majority of the implementation and enforcement
functions have been attributed to Commission services. These also require an
increased number of control functions in order to ensure the correct implementation
and management of the CBAM. The Commission has also foreseen an increased
number of measures for fraud prevention.
While this simplification package will significantly reduce the administrative burden
for importers, notably SMEs, as well as national authorities, this is made possible by
Commission services taking up increased responsibilities and more tasks, notably in
the monitoring and enforcement.
2.2.2. Information concerning the risks identified and the internal control system(s) set up
to mitigate them
The CBAM will be based on a declarative system, which entails the risk of non-
declaration or misdeclaration.
In order to address the risk of non-declaration, the system requires an authorisation
before importing goods in the scope of the Regulation. National Customs Authorities
will be in charge of enforcing this rule by not releasing into free circulation these
goods as long as the declarant is not authorised according to this Regulation.
In order to address the risk of misdeclaration a system of auditing on risk assessment
criteria as well as random audits will be in place coupled with sanctions set up as a
sufficiently high level to serve as deterrent. Auditing will take place both at the level
of CBAM declaration by the national authorities and at the level of import
declarations by customs authorities.
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between
the control costs and the value of the related funds managed), and assessment of the
expected levels of risk of error (at payment & at closure)
Commission services will control the correct application of CBAM, in particular the
surrender of CBAM certificates and the correct application of the de minimis
EN 35 EN
threshold. A strong risk management system will be applied to ensure cost-effective
controls and tackle risks of circumvention.
2.3. Measures to prevent fraud and irregularities
The financial interests of the Union should be protected through proportionate
measures throughout the expenditure cycle, including the prevention, detection and
investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly
used and, where appropriate, administrative and financial penalties.
Efficient anti-fraud actions require active cooperation, including knowledge-sharing
and exchange of information, between customs authorities and competent authorities,
both at national level and EU level; it may also require cooperation with third
countries. A specific attention should be drawn to non-reliable economic operators
(e.g. shell company, missing traders) and cross-border trade inside the EU.
Quick anti-fraud action should be put in place to react to new/newly detected fraud
risks. Authorities in charge should report and share knowledge on fraudulent
patterns.
Where an authorised CBAM declarant or an importer fails to comply with the
obligations in the CBAM regulation, penalties will be applied. The amount of the
penalty will be based on penalties in the EU ETS.
In case of repeated offences, the national competent authority may decide to suspend
the account of the declarant.
Commission services, together with national competent authorities and national
customs, have set up CBAM risk management network, which will work on a joint
anti-circumvention strategy.
EN 36 EN
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1. Heading(s) of the multiannual financial framework and expenditure budget
line(s) affected
• Existing budget lines
In order of multiannual financial framework headings and budget lines.
Heading of
multiannual
financial
framework
Budget line
Type of
expenditure
Contribution
Number Diff./Non-
diff.20
from
EFTA
countries
21
from
candidate
countries
and
potential
candidates
22
From
other
third
countries
other assigned
revenue
7
20 01 02 01 Diff./Non
-diff.
NO NO NO NO
3
09 20 04 01 (CBAM) Diff./Non
-diff.
NO NO NO NO
• New budget lines requested
In order of multiannual financial framework headings and budget lines.
Heading of
multiannual
financial
framework
Budget line
Type of
expenditure
Contribution
Number Diff./Non-
diff.
from
EFTA
countries
from
candidate
countries
and
potential
candidates
from
other
third
countries
other assigned
revenue
N/A
N/A Diff./Non
-diff.
YES/NO YES/NO YES/NO YES/NO
20
Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
21
EFTA: European Free Trade Association.
22
Candidate countries and, where applicable, potential candidates from the Western Balkans.
EN 37 EN
3.2. Estimated financial impact of the proposal on appropriations
3.2.1. Summary of estimated impact on operational appropriations
–  The proposal/initiative does not require the use of operational appropriations
–  The proposal/initiative requires the use of operational appropriations, as explained below
3.2.1.1. Appropriations from voted budget
EUR million (to three decimal places)
Heading of multiannual financial framework 3 Natural resources and environment (IT)
DG: TAXUD
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
Operational appropriations
Budget line
Commitments (1a) 28,090 34,750 33,700 30,150 126,690
Payments (2a) 17,530 21,157 32,090 33,067 103,844
Budget line
Commitments (1b) 0.000
Payments (2b) 0.000
Appropriations of an administrative nature financed from the envelope of specific programmes23
Budget line (3) 0.000
TOTAL appropriations
for DG TAXUD
Commitments =1a+1b+3 28,090 34,750 33,700 30,150 126,690
Payments =2a+2b+3 17,530 21,157 32,090 33,067 103,844
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL operational appropriations
Commitments (4) 28,090 34,750 33,700 30,150 126,690
Payments (5) 17,530 21,157 32,090 33,067 103,844
23
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
EN 38 EN
TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under
HEADING 3
Commitments =4+6 28,090 34,750 33,700 30,150 126,690
of the multiannual financial framework Payments =5+6 17,530 21,157 32,090 33,067 103,844
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
• TOTAL operational appropriations (all
operational headings)
Commitments (4) 28,090 34,750 33,700 30,150 126,690
Payments (5) 17,530 21,157 32,090 33,067 103,844
• TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes (all operational
headings)
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations Under
Heading 1 to 6
Commitments =4+6 28,090 34,750 33,700 30,150 126,690
of the multiannual financial framework
(Reference amount)
Payments =5+6 17,530 21,157 32,090 33,067 103,844
Heading of multiannual financial framework 7 ‘Administrative expenditure’24
DG: TAXUD
Year Year Year Year TOTAL
MFF 2021-
2027
2024 2025 2026 2027
 Human resources 8,572 6,271 8,740 11,700 35,283
 Other administrative expenditure - Missions 0,600 0,300 0,306 0,312 1,518
TOTAL DG TAXUD Appropriations 9,172 6,571 9,046 12,012 36,801
24
The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.
EN 39 EN
TOTAL appropriations under HEADING 7 of the multiannual financial
framework
(Total
commitments
= Total
payments)
9,172 6,571 9,046 12,012 36,801
EUR million (to three decimal places)
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL appropriations under HEADINGS 1 to 7 Commitments 37,262 41,321 42,746 42,162 163,491
of the multiannual financial framework Payments 26,702 27,728 41,136 45,079 140,645
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL operational appropriations
Commitments (4) 28,090 34,750 33,700 30,150 126,690
Payments (5) 17,530 21,157 3,090 33,067 103,844
TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under
HEADING 3
Commitments =4+6 28,090 34,750 33,700 30,150 126,690
of the multiannual financial framework Payments =5+6 17,530 21,157 32,090 33,067 103,844
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
• TOTAL operational appropriations (all
operational headings)
Commitments (4) 28,090 34,750 33,700 30,150 126,690
Payments (5) 17,530 21,157 32,090 33,067 103,844
EN 40 EN
• TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes (all operational
headings)
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under Headings 1
to 6
Commitments =4+6 28,090 34,750 33,700 30,150 126,690
of the multiannual financial framework (Reference
amount)
Payments =5+6 17,530 21,157 32,090 33,067 103,844
Heading of multiannual financial framework 7 ‘Administrative expenditure’25
EUR million (to three decimal places)
DG: TAXUD
Year Year Year Year TOTAL
MFF 2021-
2027
2024 2025 2026 2027
 Human resources 8,572 6,271 8,740 11,700 35,283
 Other administrative expenditure 0,600 0,300 0,306 0,312 1,518
TOTAL DG TAXUD Appropriations 9,172 6,571 9,046 12,012 36,801
TOTAL appropriations under HEADING 7 of the multiannual
financial framework
(Total
commitments
= Total
payments)
9,172 6,571 9,046 12,012 36,801
EUR million (to three decimal places)
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
25
The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.
EN 41 EN
TOTAL appropriations under HEADINGS 1 to 7 Commitments 37,262 41,321 42,746 42,162 163,491
of the multiannual financial framework Payments 26,702 27,728 41,136 45,079 140,645
3.2.2. Estimated output funded from operational appropriations (not to be completed for decentralised agencies)
Commitment appropriations in EUR million (to three decimal places)
Indicate
objectives and
outputs

Year
2024
Year
2025
Year
2026
Year
2027
Enter as many years as necessary to show the
duration of the impact (see Section1.6)
TOTAL
OUTPUTS
Type26 Avera
ge
cost
No Cost
No
Cost
No
Cost
No
Cost
No
Cost
No
Cost
No
Cost
Total
No
Total
cost
SPECIFIC OBJECTIVE No 127
…
- Output
- Output
- Output
Subtotal for specific objective No 1
SPECIFIC OBJECTIVE No 2 ...
- Output
Subtotal for specific objective No 2
TOTALS
26
Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.).
27
As described in Section 1.3.2. ‘Specific objective(s)’
EN 42 EN
3.2.3. Summary of estimated impact on administrative appropriations
–  The proposal/initiative does not require the use of appropriations of an
administrative nature
–  The proposal/initiative requires the use of appropriations of an administrative
nature, as explained below
3.2.3.1. Appropriations from voted budget
VOTED APPROPRIATIONS
Year Year Year Year TOTAL
2021 - 2027
2024 2025 2026 2027
HEADING 7
Human resources 8,572 6,271 8,740 11,700 35,283
Other administrative expenditure 0,600 0,300 0,306 0,312 1,518
Subtotal HEADING 7 9,576 6,571 9,046 12,012 36,801
Outside HEADING 7
Human resources 0.000 0.000 0.000 0.000 0.000
Other expenditure of an administrative nature 0.000 0.000 0.000 0.000 0.000
Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000
TOTAL 9,576 6,571 9,046 12,012 36,801
The appropriations required for human resources and other expenditure of an administrative nature
will be met by appropriations from the DG that are already assigned to management of the action
and/or have been redeployed within the DG, together, if necessary, with any additional allocation
which may be granted to the managing DG under the annual allocation procedure and in the light of
budgetary constraints.
3.2.4. Estimated requirements of human resources
–  The proposal/initiative does not require the use of human resources
–  The proposal/initiative requires the use of human resources, as explained
below
3.2.4.1. Financed from voted budget
Estimate to be expressed in full-time equivalent units (FTEs)28
VOTED APPROPRIATIONS
Year Year Year Year
2024 2025 2026 2027
 Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s Representation Offices) 21 21 25 30
20 01 02 03 (EU Delegations) 0 0 0 0
01 01 01 01 (Indirect research) 0 0 0 0
01 01 01 11 (Direct research) 0 0 0 0
Other budget lines (specify) 0 0 0 0
• External staff (inFTEs)
28
Please specify below the table how many FTEs within the number indicated are already assigned to the
management of the action and/or can be redeployed within your DG and what are your net needs.
EN 43 EN
20 02 01 (AC, END from the ‘global envelope’) 12 23 40 60
20 02 03 (AC, AL, END and JPD in the EU Delegations) 0 0 0 0
Admin. Support
line
[XX.01.YY.YY]
- at Headquarters 0 0 0 0
- in EU Delegations 0 0 0 0
01 01 01 02 (AC, END - Indirect research) 0 0 0 0
01 01 01 12 (AC, END - Direct research) 0 0 0 0
Other budget lines (specify) - Heading 7 0 0 0 0
Other budget lines (specify) - Outside Heading 7 0 0 0 0
TOTAL 33 44 65 90
The additional resources mentioned above were already allocated during the adoption of the initial
CBAM Regulation. There are no changes to the HR establishment plan posts and external staff, except
for the correction of the number of establishment plan posts for 2026 (adjusted from 15 to 25 –
Clerical error in the previous LFS).
The staff required to implement the proposal (in FTEs):
To be covered by
current staff
available in the
Commission
services
Exceptional additional staff*
To be financed
under Heading 7
or Research
To be financed
from BA line
To be financed
from fees
Establishment
plan posts
N/A N/A N/A N/A
External staff
(CA, SNEs, INT)
N/A N/A N/A N/A
Description of tasks to be carried out by:
Officials and temporary staff The CBAM regulation requires the Commission to follow up with several delegated
and implementing acts once the CBAM regulation is adopted. Commission staff will
also be needed to review and assess the functioning of the CBAM system and to
implement the IT system.
External staff Many atsks can be carried out by external agents.
3.2.5. Overview of estimated impact on digital technology-related investments
Compulsory: the best estimate of the digital technology-related investments entailed
by the proposal/initiative should be included in the table below.
Exceptionally, when required for the implementation of the proposal/initiative, the
appropriations under Heading 7 should be presented in the designated line.
The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure
on operational programmes”. This expenditure refers to the operational budget to be
used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation
EN 44 EN
of the initiative and their associated investments (e.g. licences, studies, data storage
etc). The information provided in this table should be consistent with details
presented under Section 4 “Digital dimensions”.
TOTAL Digital and IT appropriations
Year Year Year Year TOTAL
MFF
2021 -
2027
2024 2025 2026 2027
HEADING 7
IT expenditure (corporate) 0.000 0.000 0.000 0.000 0.000
Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000
Outside HEADING 7
Policy IT expenditure on operational
programmes
0.000 0.000 0.000 0.000 0.000
Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000
TOTAL 0.000 0.000 0.000 0.000 0.000
3.2.6. Compatibility with the current multiannual financial framework
The proposal/initiative:
–  can be fully financed through redeployment within the relevant heading of the
multiannual financial framework (MFF)
–  requires use of the unallocated margin under the relevant heading of the MFF
and/or use of the special instruments as defined in the MFF Regulation
–  requires a revision of the MFF
Additional IT expenditures are needed to cover IT development needed to implement
changes related to implementation of the CBAM simplification procedures and
implement the IT tools supporting detection of the irregularities and limiting the risk
of fraud: 6.350M in 2025, 6.850M in 2026 and 5.750M in 2027 – in commitment
appropriations. In addition, 2M are needed on an annual basis to cover studies,
including to assess regularly the effectiveness of the CBAM as well as outreach
activities, including external communication and training sessions with stakeholders.
These costs were not covered in the previous LFS. The proposal requires transfering
up to 25M from Heading 4 (11.0301 – CCEI) to Heading 3 (09.200401 – CBAM).
3.2.7. Third-party contributions
The proposal/initiative:
–  does not provide for co-financing by third parties
–  provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
Year
2024
Year
2025
Year
2026
Year
2027
Total
Specify the co-financing body
TOTAL appropriations co-
financed
EN 45 EN
3.3. Estimated impact on revenue
–  The proposal/initiative has no financial impact on revenue.
–  The proposal/initiative has the following financial impact:
–  on own resources
–  on other revenue
–  please indicate, if the revenue is assigned to expenditure lines
EUR million (to three decimal places)
Budget revenue line:
Appropriations
available for the
current
financial year
Impact of the proposal/initiative[1]
Year 2026
Year
2027
Year
2028
Year 2029
Year 2030
Article 09 20 04 01 1,495 1,643 1,792 1,940 2,089
[1]
As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net
amounts, i.e. gross amounts after deduction of 20% for collection costs.
For assigned revenue, specify the budget expenditure line(s) affected.
CBAM – 09 20 04 01
Other remarks (e.g. method/formula used for calculating the impact on revenue or
any other information).
Estimates on share of revenue affected was based on internal Commission
calculations using Customs import data and default values. These were applied on
revenue estimates from the Commission’s 2021 impact assessment, which stood at
approximately EUR 2.1 billion in 2030. Since less than 1% of emissions would not
be captured under the new de minimis threshold, the foregone implied revenue for
the year 2030 due to emissions not captured is estimated at approximately EUR
21,000,000.
4. DIGITAL DIMENSIONS
There are not changes in that Digital concepts and architecture approved by CBAM
Definitive system project charter, in terms of digital requirements, data used, digital
solution, reusability assessment and Measures to support digital implementation.
The only change is related to the Risk management, Circumvention monitoring
which was analyse and assessed and included in Project charter as place holder but
not included in the Project Charter estimates. The key objective of the Risk
management component is supporting detection of the irregularities and limiting the
risk of fraud
Also, the simplification changes do not result in a change of the digital solution
architecture, however, requires additional budget to implement the change to features
and services already build by CBAM.
EN 46 EN
4.1. Requirements of digital relevance
As shown in diagram abvoe , the CBAM Registry gets import information for the CBAM
goods from the EU Customs systems either from the MS or via DG TAXUD, along with the
importers customs identification and the Customs classification of the imported goods.
The CBAM system makes in return the CBAM authorisations of the CBAM Declarants
available to the National Customs Import Systems to enforce the CBAM regulation at the
import clearance of the CBAM goods. The CBAM Information system exchanges as well
risk management information with the EU Customs systems. The interface with the EU
Customs Systems is a vital feed for the operation of CBAM as the whole concept of CBAM
is to avoid double capture of information by requesting the CBAM Declarants to
complement their imports with a report of the emission incurred during their production
in third Countries. The “data provided once” is a basic principle of CBAM.
CBAM will also interact with the new CBAM Mechanism (IT systems or other means) of the
National Competent Authorities to foster the integration of the national CBAM
enforcement processes across the MS and the national processes for the collection of
penalties and recovery information.
Another key new external system for CBAM is the Common Central Platform (CCP), the
Information System by which the CBAM Declarants will purchase the CBAM certificates
from the Member States. The price of the certificates will be set by the allowance price
EN 47 EN
defined in the ETS system. The CBAM Declarants will need to keep their CBAM accounts in
an 80% balance on a quarterly basis to ensure that they are in position to surrender the
required number of certificates for offsetting their declared emissions and emission prices
already paid in third Countries. The Commission will re‑purchase the surplus certificates
from the CBAM Declarants in name of the Member States. The Commission and the
Member States must jointly establish and manage this platform, which is however outside
the scope of the CBAM Registry. The interface with the CCP is vital for the CBAM
Declarants to provision the necessary certificates in their CBAM accounts. The accounts
and the certificates will be highly sensitive information.
The ETS system will simply set the selling price of the certificates.
The primary users of the CBAM Registry are the CBAM Declarants. DG TAXUD anticipates
that they may amount to 200.000 in 2026 (following the adoption of the simplification the
number of declarants will be reduced but it will be further extended by the CBAM
extension for the downstream goods). They will use the CBAM Registry to declare the
emission accrued on the production of their imported goods on a yearly basis (May of
each year), to monitor the quarterly balance of their CBAM accounts in term of certificates
versus declared imports and to interact with the National Customs Authorities during
review of their CBAM declarations. The CBAM Declarants will first be vetted by the
National Competent Authorities via the CBAM Registry and then be granted an
authorisation to import CBAM goods and be given a CBAM account. The CBAM Declarants
will then be able to declare annually their emissions in the CBAM Registry and to
surrender the required certificates.
The Operators of the Installations producing the CBAM goods in the third countries will
register on the CBAM Registry before entering the emission details of their products. The
CBAM Declarants will be able to refer to the entries of the Operators to justify their
reported emission. It is a significant measure to reduce the compliance burden of the
CBAM Declarants and to improve the quality of the CBAM data. While there is no evidence
to support an estimate at this stage, DG TAXUD guestimates the number of Operators at
50.000 in 2026.
The CBAM National Competent Authorities (NCA) will use the CBAM Registry to grant the
access to the CBAM Declarants, to manage the CBAM Authorisations, to monitor the
CBAM accounts and declarations and interact with the CBAM Declarants to ensure their
compliance with the CBAM regulation. They are the single point of contact to the CBAM
Declarants.
Other Authorities will be granted access to the CBAM Registry to contribute to the risk
management and the enforcement from their respective areas of responsibilities. The
CBAM Registry will coordinate and support the inter-agencies collaboration in fostering
compliance. The National Customs Administrations will validate the CBAM Authorisation
during the control of the import declarations using the replication and validation services
of the CBAM Registry via the EU CSW-CERTEX.
The Commission will assign and maintain the CBAM accounts of the CBAM Declarants up
to date in the CBAM Registry, combining the information from the imports received from
National Customs Administrations, the emissions from the yearly declarations, the
quantity of certificates, their purchase reported by the CCP, their yearly surrendering
confirmed by the CBAM Declarant, and the re-purchase of unused certificates. The
EN 48 EN
Commission will use the CBAM Registry to monitor the imported goods and associated
emissions, for the risk management, and particularly the risk of circumvention. The CBAM
Registry will also offer a secure forum for the exchange of sensitive information between
all Authorities having a responsibility in the enforcement of the CBAM regulation.
The access of all actors to the CBAM Registry via dedicated portals supported by a
distributed access management across the stakeholders:
• The NCA will manage the access of the CBAM Declarants to the CBAM Declarant
portal, using either national credentials already granted by the National Customs
Administrations or an EU login one;
• The Commission will manage the access of the Operators of the third countries
Installations, to the same name portal, using credentials granted by EU login. It
remains to be clarified whether the Commission will rely on external trusted parties to
delegate them the granting of the authorisation to access the CBAM Registry;
• The NCA, the Commission and other Authorities will each manage the access to their
users.
The CBAM Core Registry depicts the automated processes that the Commission will
operate to fulfil its obligations under the CBAM regulation, as summarised above. The
Reference Data Management will be a key -office process ensuring the consistency and
integrity of all automated processes serving the collaboration and cooperation between all
stakeholders. Beyond the “simple” list of goods, of National Competent Authorities, and of
the price of emission, they will list the specific parameters used to report emissions
according to specific methodologies and the default value for the emissions as established.
The default value is key for the plausibility validation of the declared emissions.
4.2. Data
CBAM will be processing following data assets
• CBAM Declarant Data. (Phase2)
• Operators of 3rd Countries and their Installations Data. (Phase2)
• CBAM Reference Data. (Phase2)
• CBAM Users’ Access Management Data. (Phase2)
• CBAM Declarant/ Importer Functions. (Phase2)
• CBAM EU Commission Authorities Functions. (Phase2)
• Operators of 3rd Countries Installations (O3CIs) for Phase2 & Accredited Verifiers
Functions (TBC Phase3).
• CBAM Declaration Data, Review, and Declaration Lifecycle Data. (Phase3)
• CBAM Imported Goods Data. (Phase3)
• CBAM Emissions & Calculations Data. (Phase3)
• CBAM Ledger (Registry) Data. (Phase3)
• CBAM Certificate Management Data. (Phase3)
• CBAM Non-Compliance Monitoring, Circumvention Investigation, and Risk
Management Data. (Phase3)
• CBAM Reporting, Dashboards, Notifications, and Document Management Data.
(Phase3)
• CBAM Secure Forum Data. (Phase3)
EN 49 EN
• National Competent Authorities Functions. (Phase3)
• CBAM Non-Compliance Monitoring, Circumvention Investigation, and Risk
Management Function. (Phase3)
Further details for each data asset can be found in the table below
CBAM Definitive Primary
Asset Description
Relevant Business Component/ Processes Description
BAM Certificate
Management Data
CBAM Certificate Lifecycle Management provides information on certificates and
number of certificates processed, their value, and manages the certificate's lifecycle,
and for providing information for risk and non-compliance monitoring purposes.
CBAM Declarant Data
Declarant Authorisation & Declarant Replication & Validation Data.
Declarant Account & Account Management Data.
CBAM authorisation management in charge of lifecycle management of the CBAM
authorisation granted by the NCA to importers or indirect representatives.
Communicates the required information of the CBAM Declarant Account to
CBAM Authorisation Replication and Validation Services (ARVS), that maintains
the information on the CBAM Authorised Declarants to be provided to NCAs and
National Customs Competent Administrations (NCCA) in charge of assessing the
importer authorisations.
CBAM Declaration Data,
Review, and Declaration
Lifecycle Data.
Declaration Lifecycle Management & Declaration Reporting Data.
CBAM Declaration Lifecycle (Declaration Creation, Imported Goods, Emissions,
Review, Finalisation or Rejection) Management & Reporting.
CBAM Emissions &
Calculations Data.
Calculation of CBAM Declarant imported goods emissions based on data obtained
per declarant, reference data, registry data (declarant's own values), Operators &
3rd Countries (verification report), etc.
CBAM Imported Goods
Data.
The NCA and Commission Portals feature interfaces that monitor the ingress of
SURV3 data (incl. identifying issues) and enable users to manually input data, via
file batch upload, for imported goods as well as data for inward processing goods.
This data will then undergo processing, be stored within the Portals, and
subsequently forwarded to the Registry Back End for consolidation.
CBAM Ledger (Registry)
Data.
Note: The exact data to be
stored in the Ledger is not
yet finalised. The main
concept is that the Ledger is
an immutable journal and
appropriate security
measures have been
addressed. This asset will be
re-assessed during P3.
Registry Ledger Account Processing & Transaction Data.
CBAM Registry Ledger manages, accounts for, and registers journal entries of
Declarant data (incl. account number) and transactions between related CBAM
component relationships through an append-only data process and immutable data
store (incl. for declaration lifecycle management, authorisation & account
management, certificate management, risk & non-compliance monitoring, ARVS,
etc.).
CBAM Non-Compliance
Monitoring, Circumvention
Investigation, and Risk
Management Data.
CBAM information system used for tracking, monitoring, and enhancing potential
or confirmed cases of irregularities & non-compliance in CBAM scheme.
Identifying, monitoring, investigating, and reporting on circumvention and other
illegal practices in non-compliance with CBAM Regulation.
Risk Assessment (incl. results of declarations assessments) & management
component to identify & assess risks (e.g. risk events analysis, verification reports,
risk control results, etc.) relating to declaration review process & CBAM Registry
Back-End potential irregularities & circumventions (further investigation).
Integrates information and functionality between investigations, risk management,
and secure forum for respective activities.
EN 50 EN
CBAM Reference Data.
Primary source for all CBAM reference data and ensures data consistency and
integrity across all CBAM components (directly or indirectly).
CBAM Reporting,
Dashboards, Notifications,
and Document
Management Data.
Critical tool for tracking and monitoring CBAM scheme and KPIs and relevant
business metrics collection and analysis.
Used to communicate business information to relevant users of CBAM system and
scheme; this includes the ability for replying to notifications where necessary/
required.
Used for the storage, retrieval, and management of documents affecting many
compartments across the CBAM system.
CBAM Secure Forum
Data.
Platform for ad hoc communication as well as sensitive information exchange
between all authorities responsible for CBAM regulation implementation (NCAs,
NCCAs, Commission, Other Authorities such as EPPO, OLAF etc.).
All other structured and/ or un-structured information/ data sourced and/ or
extracted from the CBAM system and stored and/ or processed in storage and
media locations external to the CBAM system.
CBAM Users’ Access
Management Data.
Users’ (e.g., declarants, Member States Customs Authorities, EC Authorities, etc.)
access, login, and access management data to the CBAM system.
Operators of 3rd Countries
and their Installations
Data.
Allows operators of 3rd country installations producing CBAM applicable goods to
register/ de-register (e.g. cessation of operations) as CBAM operators and provide
relevant information regarding production processes/ methods, qualifying
parameters, emissions data, and verification reports, etc.
The relevant verification report may be made available for use by CBAM
Declarants - this information includes confidential production and qualifying
parameters data that may not be available to Declarants but only EU Commission
and NCAs).
CBAM Declarant/
Importer Functions
Primary business functions performed by the Declarant/ trader relying on processes
executed/ initiated through the CBAM Declarant portal.
CBAM EU Commission
Functions
Primary business functions performed by the European Commission relying on
processes executed/ initiated through the CBAM Commission portal.
CBAM Non-Compliance
Monitoring, Circumvention
Investigation, and Risk
Management Function
CBAM information system used for tracking, monitoring, and enhancing potential
or confirmed cases of irregularities & non-compliance in CBAM scheme.
National Competent
Authorities Functions
Primary business functions performed by member state’s national competent
authorities (NCAs/ NCCAs) relying on processes executed/ initiated through the
CBAM NCA portal.
Operators of 3rd Countries
Installations & Accredited
Verifiers Functions
Primary business functions performed by 3rd Country Operators & Installations and
Accredited Verifiers (TBC) relying on processes executed/ initiated through the
CBAM 3rd Country Operators & Installations portal.
4.3. Digital solutions
EN 51 EN
CBAM Registry High Level architecture will be made of 3 layers:
• The portal layer offering different portals for each of the user communities of the
CBAM Registry: CBAM Declarants, Operators of the third countries Installations,
CBAM National Competent Authorities, the Commission, The National Customs
Administrations, OLAF, and other EC services;
• The User Access Management layer: to manage the Authentication and Authorisation
of the users of the CBAM Registry. The National Competent Authorities will need to
provide and manage the access of the CBAM Declarants (expected to be above
200.000 parties in 2026) while the Commission will do the same for the third
countries Operators (estimated at 50.000 parties in 2026) each MS and EU
administrations being in charge of the access of its own users;, each MS and EU
administrations being in charge of the access of its own users;
• The Back End: to support all data and rule management required for CBAM as well as
all interactions with external systems. To be noted that: to support all data and rule
management required for CBAM as well as all interactions with external systems. To
be noted that:
 CBAM will implement numerous workflows, notifications, and exchanges of
information across the Commission, the National Competent Authorities and
EN 52 EN
4.4. Interoperability assessment
the CBAM Declarants, in particular in the areas of declaration submission,
review (including risk assessment);
 The management of the Declarant accounts, the management CBAM
certificates (potentially financial assets), the risk management and the secure
exchange of information have high security requirements.
CBAM is cross border by design as it supports the CBAM lifecycle across the EU, and in
particular the orchestration of the Risk Assessment, review of the CBAM Declarations
across all NCA and the Commission.
Collaboration across National Customs systems will be ensured, by leveraging the
Commission’s IT services and interfaces (such as SURV3, EU CSW - CERTEX), as well
as new components, specifically designed for CBAM purposes.
The CBAM Registry has been designed to support interoperability by emphasizing use on
openness, modularity, decoupling and robust interfaces. It will interact with the CBAM
national systems, with the Common Central Platform, the EU Customs systems from DG
TAXUD and the National Customs Administrations, with the other DG’s systems via open
interfaces
The CBAM Central Repository will use the existing interfaces of the EU Customs Systems
managed by DG TAXUD and will define dedicated formats for the Customs Import and
Inward Processing records to be provided by the National Customs Administrations. The
new interfaces with the National Customs Systems will be published early 2024 to allow
the National Customs Administrations enough lead time to prepare their systems
accordingly.
The S2S interface between the CBAM Registry and the CCP will be based on structured
messages exchange and be available early 2024 to allow enough lead time for both the
CBAM Registry and the CCP to integrate their respective interfaces by mid-2025.
The S2S interface between the CBAM Registry and the CBAM National Systems (to be
developed by the MS) will be based on structured message exchanges and also be made
available early 2024.
The S2S interface with the systems of the other EU Authorities will be specified and
developed on a bilateral basis during the elaboration and build of the CBAM Registry.
All these interfaces will be structured messages based and will comply as far as possible
with the EUCDM and with the UCC Annex B. The A2B and B2B specifications will be
referred in a CBAM Implementing Act
Reusability Constraints
The reusability is at the very heart of the architecture principles adopted for the CBAM
Central Register. There are two sides to the reusability: use of external services by the
CBAM Registry and re-use components in the build of the CBAM Registry.
Reusability from DG TAXUD services and components
EN 53 EN
The CBAM Registry will use the EU Customs Services offered by DG TAXUD out of the
box to:
• retrieve the EORI information of the trader;
• get the customs import records available from Surveillance 3;
• get the CBAM goods from the TARIC system;
• offer the CBAM Authorisations Replication and Validation service to the National
Customs Systems via the EU CSW-CERTEX and;
• exchange secure information with the CRMS2 system.
The user access management of the portals of the CBAM Registry will be entrusted to
UUM&DS, allowing the willing MS to re-use the Customs credentials of the CBAM
Declarants to provide them access to the CBAM Declarant portal and the Commission (or
trusted third parties) to grant access right to the Operators of the third countries Installations
to their EU Login authentication credentials.
The CBAM Registry will reuse several technology components of the DG TAXUD and
Corporate IT landscape without compromising its compliance with the floatability principle
spelt out in the Architecture Overview in appendix 2, namely:
• The DG TAXUD TSOAP middleware architecture which will be reused in each
of the CBAM Registry compartments;
• The monitoring and auditing COTS Elk and Kafka;
• The sources of the Customs application framework management (TATAFng) of
DG TAXUD;
• The documentation and source code of the Customs Decision Management
System of DG TAXUD for the built of the CBAM Authorisation system;
• The documentation and source code of the Customer Reference System of DG
TAXUD to provision the CBAM Authorisations to the National Customs
Systems for their control during the import clearance;
• The documentation and source code of the Customs Risk Management System 2
(CRMS2) of DG TAXUD to provision the Secure Forum for Exchange of
Information;
• The DG TAXUD TEMPO methodology, including PM²;
• The 2 Data Centres of DG TAXUD for the testing, integration and for as long as
the CBAM Registry operation is entrusted to DG TAXUD, along with their
firewalling, Active-Active clustering, the load balancing and the 2 DC Active-
Passive to ensure the scalability, High Availability, Disaster Recovery, some of
the security needed by the CBAM Registry.
To be noted that DG TAXUD has followed all recommendations from DIGIT since 2014
when designing Business Application Services, Data Services and Utility Services for its
generation of SOA applications.
Reusability from EU corporate services and components
The CBAM Registry will use EU Login for the authentication of the CBAM declarants of
the MS being UUM&DS type D, of the Operators of the third Countries Installations and
all officials of the National Competent Authorities, of the Commission, of the National
Customs Administration and other Commission services. The CBAM Registry will use the
Customs eIDAS eID network for the authentication of the CBAM Declarants from the MS
EN 54 EN
4.5. Measures to support digital implementation
Deployment in two phases/parts of the CBAM Registry
UUM&DS type A, B & C.
The CBAM Registry will use UUM&DS for the authorisation of all its users.
A migration from UUM&DS to EU Access will be considered when all functionalities of
UUM&DS will be offered by EU Access, including the support of the Customs eIDAS eID
network.
The CBAM Registry will make available the CBAM public information on Europa.
In addition, DG TAXUD is keen to maximize the re-use of Corporate services and
components that would meet some of the CBAM requirements, de-risk its timely
deployment and secure the quality of its operation while lowering its CAPEX and OPEX.
The CBAM regulation defines the deployment of the CBAM Registry in two periods
declined in 3 consecutive phases:
• Period perspective: a progressive deployment during a Transitional Period from the
Q4 2023 until the Q4 2025, followed by a Definitive Period from Q1 2026.
 During the Transitional Period, the CBAM importers report the emission of
their imported goods quarterly but do not have to purchase and surrender
certificates. It is the running in period of the CBAM scheme.
 During the Definitive Period, starting on 01 January 2026, the CBAM Declarants
must be authorised, they declare their emissions once per year, they purchase
certificates to keep their CBAM account at minimum 80% balance between
their emissions and the purchased certificates, and they surrender their
certificates with their yearly declarations.
• Phase & Part perspective:
 CBAM Phase 1: the “CBAM reports” by the importers of CBAM goods (so called
Part 1), to be used during the whole Transitional Period as from Q4 2023 (out
of scope of the Project Charter);
 CBAM Phase 2: the “CBAM reports” provided by the importers of CBAM goods
(Part 1), the CBAM Declarant Authorisation and the registration of the
Operators of third countries Installations (so called Part 2) as from 31
December 2024 in anticipation of the Definitive Period;
 CBAM Phase 3: The Part 2 augmented with the CBAM declarations and
certificates along with the full CBAM account management (so called Part 3) as
from the start of the Definitive Period but without Part 1 “CBAM Reports” as
from the end of the Transitional Period 31 December 2025.
EN 55 EN
The CBAM Phase 1 (implementation of CBAM Part 1 and its operation from Q4 2023 until
end 2025 is entirely covered by the Project Charter of the Transitional Period
The two figures below illustrate the approach to deliver the full scope of the Definitive
System in two phases, depicting the user communities, the external systems at play and
the main entities being managed in the scope of the respective phases. Refer to the next
section for the definition of the external systems and entities.
CBAM Part 2 Scope: on top of Part 1, The “CBAM reports” by the importers of CBAM
goods, comes the Part 2 “CBAM Authorisation and Installations” (both in green in the
following diagrams), which will enter in operation on 31 December 2024 as mandated by
the CBAM regulation. Both Part 1 and Part 2 will then be further maintained and evolved
during the remaining of the Transitional Period. The “CBAM Authorisation and
Installation” will be integrated in the CBAM Definitive System while the “CBAM reports”
will be phased out at the end of the Transitional Period. The Part 1 and Part 2 interface
the CBAM Registry with the National Customs Import Systems, with the National Customs
Inward Processing Systems and the supporting EU Customs systems of DG TAXUD to
foster compliance at minimal burden for trade. CBAM Part 2 comes in anticipation of the
Definitive System by delivering its first component.
The CBAM Phase 2 Timeline: It starts on the 31 December 2024 and ends on the 31
December 2025 with the start of the Definitive Period. The user community is extended
to the Operators of the Installations in the third countries while the CBAM Declarants will
need to obtain the required authorisations for the Definitive Period.
EN 56 EN
EN 57 EN
CBAM Part 3 Scope: The “CBAM Declarations, Accounts and Risk Management” part
(in purple in the following diagram), will enter in operations at the start of the
Definitive Period scheduled for the 1 January 2026. It constitutes the core of the CBAM
definitive system. CBAM Part 3 also includes the interfaces with the National Import
Systems for the CBAM Authorisations via the EU CSW-CERTEX, the Common Central
Platform for the purchasing of CBAM Certificates, ETS, OLAF, and the Systems of the
National Competent Authorities. Furthermore, it adds the CBAM Certificates
capabilities to the CBAM Registry as well as all the Risk Management ones. As the
CBAM Certificates and Risk Management modules handle confidential information and
monitor cases of circumvention and non-compliance, CBAM Part 3 manages sensitive
information and requires highly secure processes. This part will be further maintained
and evolved during the Definitive Period.
The CBAM Phase 3 Timeline: It starts on the 1 January 2026 and matches with the
Definitive Period. During this phase, only the parts 2 & 3 of CBAM will operate in
parallel and in close interaction, as the Part 1 was specific for the Transitional Period
and is phased out. The user community is extended to the National Customs
Administrations
CBAM Part 3 Scope: The “CBAM Declarations, Accounts and Risk Management” part
(in purple in the following diagram), will enter in operations at the start of the
Definitive Period scheduled for the 1 January 2026. It constitutes the core of the CBAM
definitive system. CBAM Part 3 also includes the interfaces with the National Import
Systems for the CBAM Authorisations via the EU CSW-CERTEX, the Common Central
Platform for the purchasing of CBAM Certificates, ETS, OLAF, and the Systems of the
National Competent Authorities. Furthermore, it adds the CBAM Certificates
capabilities to the CBAM Registry as well as all the Risk Management ones. As the
CBAM Certificates and Risk Management modules handle confidential information and
monitor cases of circumvention and non-compliance, CBAM Part 3 manages sensitive
information and requires highly secure processes. This part will be further maintained
and evolved during the Definitive Period.
The CBAM Phase 3 Timeline: It starts on the 1 January 2026 and matches with the
Definitive Period. During this phase, only the parts 2 & 3 of CBAM will operate in
parallel and in close interaction, as the Part 1 was specific for the Transitional Period
and is phased out. The user community is extended to the National Customs
Administrations.
EN 58 EN
CBAM Phase 3 - High Level Architecture