The deadline for the third quarterly Carbon Border Adjustment Mechanism (CBAM) report is fast approaching 31 July 2024. As companies navigate the transitional period for the EU CBAM, which spans from 31 October 2023, to 31December 2025, it’s essential to stay informed about the evolving reporting requirements.

Companies need to prepare for stricter requirements. For the fourth report, covering July to September 2024, the use of default emission values will no longer be permitted. Companies are required to collect specific direct and indirect emissions data from their suppliers. Only up to 20% of the total embedded emissions can be based on estimations.

Until December 31, 2024, companies could use alternative methods for determining direct embedded emissions. However, starting 1 January 2025, specific embedded emissions must be determined using the monitoring, reporting, and verification (MRV) specified under the EU Emissions Trading Scheme (ETS) for installations within the EU.

Key takeaway

Reporting Deadline: July 31, 2024, for the third quarterly CBAM report.
New Requirements: For the fourth report (July-September 2024), supplier-specific emissions data is mandatory, with limited estimations.
Methodology Shift: From January 1, 2025, emissions must be determined using ETS methodologies, and MRV rules will be enforced.