What is CBAM transitional period?

QuestionsCategory: CBAMWhat is CBAM transitional period?
Rishi Rai asked 1 month ago
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What is CBAM transitional period
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What is CBAM transitional period
Description
Understand the significance and impact of the CBAM transitional period introduced by the Europeon Union (EU).
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GreenSutra
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1 Answers
Best Answer
Team GreenSutra® Staff answered 1 month ago

CBAM or Carbon Border Adjustment Mechanism was enforced by the European Union on 1st October 2023 in an attempt to address the global problem of climate change.

CBAM impacts businesses and public authorities that are located in EU and non-EU countries.

In order to allow a smooth and gradual implementation, CBAM regulators designed and introduced the transitional period which would allow time to the businesses and public authorities to adapt and adjust to the new statutory requirements.

The transitional period for CBAM starts from 1st October 2023 and shall extend till 31st Decemeber 2025.