Yesterday the European Commission published a draft Implementing Act relating to the Carbon Border Adjustment Mechanism(CBAM), which aims to reduce “carbon leakage” by requiring imports into the ETS area of certain commodities including electricity, hydrogen, aluminium and iron to have certificates attached to them. The quantity of certificates are driven by factors such as direct and indirect emissions as well as the rules in the country of origin. Reporting starts in January 2024.

The draft Implementing Act can be found here and accompanying annexes here. The level 1 text can be found here. As announced here, the drafts are open for comment for 4 weeks.