Source: European Parliament
The Commission is committed to carry out a review and to assess the effectiveness of the Carbon Border Adjustment Mechanism (CBAM) in addressing the risk of carbon leakage.
For this purpose, the Commission will present a report to the co-legislators in 2025 which will cover the possible extension to other goods and downstream products.
This report will already look into the question of export carbon leakage, building on the Commission’s 2024 Carbon Market Report. The Commission is also strongly committed to simplifying CBAM, building on the lessons learnt in the transitional period.
As regards the risk of circumvention, the CBAM Regulation, as agreed by the co-legislators, empowers the Commission to tackle practices of circumvention, including by cross-checking customs and other available data with the information provided by CBAM declarants.
Where the evidence confirms the existence of circumvention, the Commission is empowered to add relevant slightly modified products to the scope of the regulation.
The Commission may also initiate investigations into claims of circumvention notified by either a Member State, or by an affected, benefited, or other interested party.
In carrying out such investigations, the Commission will work closely with the competent authorities as well as the customs authorities.