Energy Regulation Solutions

Maryna Hritsyshyna

Energy Regulation Solutions

Maryna Hritsyshyna

  • Energy Regulation Solutions

    Maryna Hritsyshyna

    About us

    Energy Regulation Solutions offers specialized regulatory consulting at the intersection of innovation, climate goals, and market readiness. We support developers, investors, and policymakers in navigating complex regulatory landscapes for hydrogen, CO₂, and Power-to-X technologies in the EU, Germany, and the US

General Introduction to CBAM

General Introduction to CBAM

Carbon border adjustment mechanism (CBAM)
CBAM is a regulatory mechanism applicable to greenhouse gas emissions embedded in imported goods within the EU, aimed at preventing the risk of carbon leakage. CBAM is a policy measure complementing the EU ETS system. Primary Purpose of CBAM is to ensure equal carbon prices for imported goods and goods produced in the EU.
Application of carbon prices for import of these goods: hydrogen, electricity, cement, fertilizers, iron and steel
Exemptions from CBAM application: goods imported from countries covered by the EU ETS or fully linked with the EU ETS; goods valued lower than 150 EUR; goods for military purposes
Transition Period: From 1 October 2023 till the end of 2025 importers need to submit CBAM quarterly Reports. Full Implementation Period: From 1 January 2026 importers will be able to become authorized CBAM declarants and buy CBAM certificates. CBAM certificate is a certificate in electronic format corresponding to one tone of CO2e of embedded emissions in goods.
What emissions are covered by CBAM?
Key actors of CBAM
Comparison of importers and exporters obligations: Purchase of Allowances, Purchase of CBAM Certificates
Possible impact of CBAM on importers: Supply Chain Interruption (to decrease CBAM certificate costs, a priority will have suppliers with low-emission products), Increase in Import Costs (due to the purchase of CBAM certificates from 2026), Additional Administrative Burden (additional reporting obligations for importers), Regulatory Complexity (challenges with navigating the EU regulatory framework due to constant changes and Complexity).
What should importer do: Understand the reporting requirements under EU rules, Analyse your supply chain for affected goods, Choose the appropriate reporting method (EU method, third-country system, or reference values), Prepare for quarterly reporting during the transition period, Plan for certificate purchases starting in 2026.

Visit Carbon Border Adjustment Mechanism page fore mode details on CBAM.

Contact us for support on CBAM.