ISTANBUL 

Delays in publishing the remaining legislation needed for the proper implementation cause 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.

The association said, however, with just two months remaining before CBAM charges begin to apply, many critical implementation details remain unknown.

It stressed that motor vehicle manufacturing is among the sectors most impacted by CBAM, adding: "Our members import and process large volumes of steel and aluminum and their role in the proper functioning of the mechanism is crucial, given the need for operators to be able to properly and accurately report the embedded emissions of their imports.

"However, the European Commission has yet to publish details on how important elements such as emission calculation methodologies, default values, the sale and repurchase of CBAM certificates, and the role of accredited verifiers, amongst others, should be applied."

ACEA Director General Sigrid de Vries said automakers are committed to making CBAM work and have already invested a significant amount of resources into their compliance operations, but there are far too many critical unknowns at this late stage, making proper implementation by January 1, 2026, virtually impossible.

"We call on the European Commission to publish the required texts as soon as possible and to understand the need for flexibility when it comes to the demands placed on operators next year," she added.

The EU Commission reached a provisional agreement in December 2022 on the CBAM, aiming to reduce greenhouse gas emissions by implementing additional taxation on carbon-intensive imports.

The CBAM will regulate iron and steel, cement, fertilizers, aluminum, electricity, and hydrogen sectors, as well as indirect emissions.