Brussels: Delays in publishing the remaining legislation needed for the proper implementation are causing risks for the Carbon Border Adjustment Mechanism (CBAM), the European Automobile Manufacturers' Association (ACEA) stated on Wednesday. "Our manufacturers already devote significant resources towards CBAM reporting and are committed to being compliant when it enters its definitive phase in 2026," the ACEA said in a statement.

According to Anadolu Agency, the association expressed concern over the lack of clarity, with just two months left before CBAM charges begin to apply, as many critical implementation details remain unknown. ACEA highlighted that the motor vehicle manufacturing sector is among those most impacted by CBAM, emphasizing that their members import and process large volumes of steel and aluminum. This makes their role crucial in the mechanism's functioning, particularly in accurately reporting the embedded emissions of their imports.

The European Commission has not yet published details on essential elements such as emission calculation methodologies, default values, the sale and repurchase of CBAM certificates, and the role of accredited verifiers, which are necessary for proper compliance. ACEA Director General Sigrid de Vries stressed the automakers' commitment to making CBAM work and their investment in compliance operations. However, she pointed out that too many critical unknowns remain, making proper implementation by January 1, 2026, nearly impossible.

De Vries urged the European Commission to release the required texts promptly and recognize the need for flexibility regarding demands placed on operators next year. The EU Commission reached a provisional agreement in December 2022 on CBAM with the goal of reducing greenhouse gas emissions by imposing additional taxation on carbon-intensive imports. CBAM will regulate sectors including iron and steel, cement, fertilizers, aluminum, electricity, and hydrogen, as well as indirect emissions.