Blurring the lines: shippers need to be aware CBAM will impact EU imports
It is entirely possible that the introduction of the transitional period for the EU’s Carbon Border Adjustment Mechanism (CBAM) on 1 October 2023 may have failed to capture the attention of ship operators and owners outside the EU.
The effect of the introduction of the transitional period for the EU’s CBAM scheme on 1 October will be felt most keenly in the commodity carbon steel and aluminium markets, which will see reporting requirements imposed on 350 semi-finished and finished products and 58 products respectively. The breakbulk market has been preparing for the introduction of these rules for some time, and the immediate impacts will be localised.
The scheme is expected to introduce significant bureaucratic reporting requirements for importers of the products, even before the financial penalties for the scheme are introduced in 2026.