EU governments are taking urgent steps to recruit and train the staff needed to effectively manage the Carbon Border Adjustment Mechanism (CBAM). As the full implementation of this initiative approaches, member countries are mobilising to prepare adequately.

According to representatives of national competent authorities, compiled by Carbon Pulse, several EU countries are at different stages of preparation for CBAM. While some, such as Germany, have not yet recruited specific staff, others, such as Slovenia and Latvia, are awaiting additional guidance from Brussels.

It was noted that, for example, the German Emissions Trading Authority (DEHSt) still has to hire additional staff to comply with the new regulations. In addition, less than 10 % of German companies subject to CBAM complied with the reporting requirements this year, according to DEHSt data.

The struggle to recruit new staff is just one of the challenges faced by member states. Many companies have also faced technical difficulties in uploading data to the European Commission’s CBAM register, leading to extensions of deadlines and concerns about potential penalties for non-compliance.

The CBAM, which imposes a price on carbon emitted during the production of certain goods imported into the EU, entered into force in October 2023 with a transitional phase. During this phase, importers must report the embodied emissions of products such as cement, iron, steel, aluminium, fertilisers, electricity and hydrogen.

Imported emissions are expected to be subject to a carbon price from 2026, underlining the urgency of member states’ preparedness.

From January 2025, companies will have to use the EU methodology for reporting their greenhouse gas emissions, which could pose a challenge for some smaller producers who lack the necessary resources or expertise. The EU’s CBAM has already had a significant impact, and other jurisdictions are considering similar carbon pricing or leakage policies.

Is your company ready to manage the Carbon Border Adjustment Mechanism?

At Global Factor we have over 20 years of experience in carbon markets. We are here to help you understand and adapt to this new scheme.

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Source: Carbon Pulse