We would like to report the latest developments regarding the Carbon Border Adjustment Mechanism (“CBAM”), introduced by Regulation (EU) 2023/956 and related implementing regulations (notably Reg. EU 2023/1773 and Reg. EU 2025/486), as part of the European Green Deal and the “Fit for 55” package.
1. Scope of application and obligated parties
CBAM applies to imports into the European Union of specific categories of carbon-intensive goods (cement, electricity, fertilizers, cast iron, iron, steel, aluminium, hydrogen), identified by Combined Nomenclature codes listed in Annex I of the Regulation.
It is therefore essential to verify the correct customs classification of goods, also in light of periodic amendments to the Common Customs Tariff, to determine CBAM applicability.
2. Implementation phases and reporting obligations
Transitional phase (1 October 2023 – 31 December 2025):
Importers (or their indirect customs representatives) are required to submit, via the CBAM Transitional Registry, a quarterly report (“CBAM report”) including:
· Quantity and type of goods imported · Embedded CO2 emissions (direct and indirect) · Any carbon price paid in the country of origin.
From the third quarter of 2024, the general use of default values for emission reporting is no longer permitted; it is mandatory to obtain and declare actual data provided by non-EU producers. If this is not possible, importers must document and justify the efforts made to obtain such data, attaching evidence in the “comments” section of the Registry.
Definitive phase (full regime, currently scheduled from 1 January 2026, but possibly postponed to 1 February 2027):
Only parties holding the status of “authorised CBAM declarant”, issued by the competent national authority (in Italy, the Ministry of Environment and Energy Security – MASE), may import CBAM goods.
Importers must submit an annual CBAM declaration, including:
· Quantity of goods imported · Embedded emissions · Number of CBAM certificates to be surrendered, calculated based on declared emissions and the average price of EU ETS allowances.
The start of the obligation to purchase CBAM certificates and the deadline for submitting the first annual declaration may be postponed to 1 February 2027 and 31 August 2027, respectively, according to the latest proposed amendments (Proposal for a Regulation of the European Parliament and of the Council COM(2025) 87 final, presented onFebruary 26, 2025, known as the “Omnibus package”).
3. Authorisation procedure
The application for “authorised CBAM declarant” status must be submitted via the definitive CBAM Registry, in accordance with Reg. EU 2025/486. The application must be accompanied by: · Documentation proving financial and operational capacity · Absence of serious or repeated violations of customs, tax or CBAM regulations · EORI certificate · Estimate of import volumes and value
For newly established entities, a bank guarantee may be required. The authorisation process provides for an assessment within 120 days (180 days for applications submitted before 15 June 2025).
4. Liability, compliance and operational recommendations
Responsibility for the accuracy and completeness of CBAM declarations lies with the importer/declarant, even if obligations are delegated to third parties.
We recommend updating supply contracts with specific clauses for the transmission of emission data and implementing due diligence and verification procedures for data received from non-EU suppliers.
It is advisable to establish internal compliance procedures and to constantly monitor regulatory and tariff changes.
5. Sanctions
Failure to submit CBAM reports, submission of incomplete or inaccurate data, or repeated violations, will result in financial penalties ranging from €10 to €50 per tonne of undeclared CO2, as well as possible revocation of import authorisation. Competent authorities will assess the seriousness, duration and recurrence of violations, as well as the declarant’s cooperative behaviour.
6. Outlook and updates
As anticipated, the European Commission's proposal to postpone the start of the definitive phase of the CBAM to 1st February 2027 is currently being assessed. Under this proposal, importers would start purchasing CBAM certificates from February 2027, while the deadline for submitting the first annual CBAM declaration, covering imports made in 2026, would be postponed to 31st August 2027.
The European Commission has also proposed to limit CBAM obligations to entities importing more than 50 tonnes of CBAM goods per year. Importers below this threshold will be considered “occasional CBAM importers” and will not be subject to authorisation, reporting or certificate purchase obligations, but will have to monitor their imports.
There are also discussions underway regarding streamlined authorization procedures for CBAM declarants, the introduction of formal delegation options for submitting declarations, the requirement starting in 2027 to return certificates for 50% of verified emissions on a quarterly basis (instead of the initially planned 80%), the strengthening of the sanction framework and administrative cooperation between Member States, and greater transparency regarding carbon pricing in third countries to avoid double counting or evasions.
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