The EU’s Carbon Border Adjustment Mechanism (CBAM) comes into effect. EU-based importers of iron, steel, cement, fertiliser, aluminum (exceeding 50 tonnes per calendar year), electricity and hydrogen are now required to declare the emissions embedded in their products. If the product has a high level of embedded emissions in its production chain, the importer must now pay for the emissions generated in excess through the surrender of CBAM certificates. The EU Commission has proposed a temporary suspension of tariffs on imported fertilisers, considering that availability and affordability of fertilisers are essential for the bloc’s farming and food security. Additionally, the Commission undertook to assess the situation, monitoring the internal market, which may lead to a temporary suspension of the application of the CBAM for this specific sector.
