European Commission updated CBAM User Manual

The European Commission has recently updated the guide for the Carbon Border Adjustment Mechanism (CBAM), on September 13, 2024. This update introduces significant simplifications in reporting procedures, which are expected to streamline the process for stakeholders. Below are the key modifications in the updated guide:

• Improved reporting features:
  
  • a PDF download option is now available for reports in draft, under amendment and under correction states (and not only for submitted reports);
  • the "Date of Signature" in the report header is now read-only box and will be automatically populated upon report submission.
• Automated calculations:
  
  • total direct and indirect emissions, as well as total emissions at the installation level, will now be calculated automatically, after entering the relevant information;
  • the unit of measure for emissions will be automatically filled with EMU1 (tons).
• We also want to remind you of the following:
  
  • the use of default values to report the embedded emissions of imported products subject to CBAM is possible only until the reporting for Q2 2024 (which should have been submitted by July 31, 2024, at the latest);
  • starting with the reporting for Q3 2024 (which must be submitted by October 30, 2024, at the latest), actual data regarding embedded emissions must be reported;
  • starting from 2026, only the authorized declarants will be able to import CBAM products. The CBAM authorization process will start on December 31, 2024 and the companies will need to meet certain criteria to obtain the status of an authorized declarant, similar to the AEO authorization process.

The EY team is available for further details on the above.