The European Commission will oversee governance of the scheme
EU agrees carbon border tariffs
Carbon border adjustment mechanism will begin test period in 2023 and phase in slowly over course of the decade
Non-EU countries importing carbon-intensive goods into the EU will have to pay a tax on them from 1 October 2023, following a deal by EU lawmakers on the proposed Carbon Border Adjustment Mechanism (CBAM). The Council of the EU and the European Parliament have finalised negotiations on the CBAM, which will oblige importers to purchase certificates to pay for the difference between the carbon price paid in the country of production and the price of carbon allowances under the EU emissions trading system (ETS). The CBAM will initially operate only with reporting obligations, with the aim of collecting data. The end of this test phase has yet to be agreed, but it is likely the mechanism will be
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