European Commission Extends Carbon Border Adjustment Mechanism Report Submission Deadline

On January 29, 2024, the European Commission issued a HX420LAD+AZ steel statement announcing a 30 day extension of the submission deadline for quarterly reports under the carbon border adjustment mechanism, with the original deadline being January 31. This decision is to address the technical issues encountered by a large number of importers when submitting reports, which have resulted in some companies being unable to submit on time.

The carbon border adjustment mechanism is a new carbon tax policy that entered the transitional phase on October 1, 2021. This policy will initially apply to specific commodities and selected precursors, including cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen, whose production processes emit high emissions and are most prone to carbon leakage. The gradual introduction of this policy is consistent with the cancellation plan of free subsidies under the EU emission trading system, aimed at supporting the carbon reduction process of industry within the EU HX420LAD+AZ steel.

The European Commission emphasizes that fines will not be imposed on applicants who encounter technical difficulties during the initial submission of the carbon border adjustment mechanism report. At present, the technical team is making every effort to solve the problem.

The European Commission encourages applicants who have not encountered significant technical issues to submit their carbon border adjustment mechanism reports before the end of the deadline. And this extension period will provide more time for enterprises troubled by technical issues to complete HX420LAD+AZ steel reports and ensure the effective implementation of policies.