When Do Taxes To Be Collected Under The European Green Deal Start?

A Border Carbon Adjustment Mechanism (CBAM) was introduced for countries exporting to the EU. The EU's CBAM transition process, started in October 2023, will continue until December 31, 2025. Afterwards, the taxes will start.

The Regulation establishing CBAM was published in the Official Journal of the EU on May 16, 2023. The regulation determining the implementation procedures and principles and calculation methodology for the transition period was adopted on August 17, 2023. Although CBAM targets a wide range of products, it was intended to start with a number of sectors where the risk of carbon leakage is high and focused on goods with similar characteristics. In this context, as of October 1, 2023, the cement, electricity, fertilizer, iron and steel, aluminum and hydrogen sectors will be covered by the SDCC and will be subject to the obligation to declare carbon.