The CBAM puts a carbon price on imports of certain goods (e.g. electricity, steel, cement) to prevent carbon leakage and ensure a level playing field with EU producers covered by the EU ETS. Regulation (EU) 2023/956 entered into force in May 2023, with a transitional reporting phase running from October 2023 to the end of 2025 and full implementation from 2026.
The detailed reporting rules are laid out in Implementing Regulation (EU) 2023/1773, covering reporting obligations, emissions calculation methods and the launch of a dedicated CBAM Transitional Registry. Full implementation, including the purchase of CBAM certificates, is scheduled for 2026.
CBAM is relevant for Europex and energy exchanges as it directly affects cross-border electricity trade, carbon pricing mechanisms and market transparency. It reinforces the role of carbon markets in driving decarbonisation while introducing new data and compliance requirements for traded electricity imports.