By embracing the Carbon Border Adjustment Mechanism (CBAM) and proactively adapting to its requirements, companies can stay ahead of the curve and demonstrate their commitment to sustainability.

To ensure compliance with the latest regulations, the European VAT, Customs & Environmental taxes team at Andersen prepared a document on the CBAM, a directive that is revolutionizing the way we tackle carbon emissions in international trade.

The mechanism is designed to price carbon emissions linked to carbon-intensive goods imported into the EU, preventing carbon leakage. Initially, it applies to certain goods at risk of leakage, and importers report emissions without financial obligations. However, starting from 1 January 2026, importers must declare imports and embedded emissions from the previous year and surrender CBAM certificates for compliance.

It is therefore crucial to proactively anticipate and plan for the future.

You can read the full document here.