About
The 'Fit for 55 Package' contains regulations adopted in order to cut net greenhouse gas emissions with at least 55% by 2030, compared to 1990 levels. CBAM is a part of this package and will in the European Commission's view serve as an essential element of the EU toolbox to meet the objective of a climate-neutral EU by 2050 in line with the Paris Agreement by addressing risks of carbon leakage. The 'carbon charge' is an example of EU controlling unwanted and climate hostile business, importation and production, and is a part of EU playing a lead role in global climate action. In general, fining such charges on unwanted business is proven effective, and we expect more of such duties to be introduced in the future in order to reach the global climate goals.
CBAM applies to certain goods originating in third countries considered major contributors to carbon footprints when imported to the EU, ensuring equivalent carbon pricing for imports and domestic products. The goods currently covered by CBAM are cement, electricity, fertilisers, iron and steel, aluminium, hydrogen as well as indirect emissions.
Products produced in Norway and imported to the EU from Norway will not be covered by CBAM, and, thus, CBAM should not have an impact on the pricing of produced products in Norway. However, CBAM will apply to Norwegian businesses importing goods produced in third countries to the EU implying that Norwegian importers must have authorisation to import CBAM goods. As importers based in Norway at this time will not have access to the CBAM Transitional Registry, which is an electronic database for CBAM reporting during a transitional period (see below), the importer must use an authorised reporting declarant when reporting on CBAM.
One objective of CBAM is to prevent carbon leakage by targeting production in third countries that are less ambitious in their climate policies, to incentivise such third countries to follow the EU and join in on the goal of decreasing greenhouse gas emissions ("GHG"). CBAM can motivate companies and importers to choose sustainable suppliers. Companies with a global supply chain of goods comprised by CBAM should therefore evaluate their suppliers resident in third countries with less restrictions on GHG emissions.
To provide businesses and other countries with legal certainty and stability, CBAM will be phased in gradually and will initially apply only to the above mentioned goods. In a transitional phase, a reporting system is applicable from 1 October 2023 until 31 December 2025 involving quarterly reporting of embedded emissions, split into direct and indirect emissions, including an overview of any carbon price effectively paid abroad as the importers are entitled to a reduction in CBAM for any carbon price paid in the country of production (which is not rebated or in other way compensated upon export). By 31 May each year, and for the first time in 2027 for the year 2026, the authorised CBAM declarant is obligated to report carbon emissions anually.
The charge will be settled through the purchase of certificates by importers. The price of the certificates will be determined by the EU Commission on an ongoing basis based on the weekly average auction price of EU Emissions Trading System (EU ETS) allowances expressed in €/tonne of CO2 emitted.
Who does it impact?
- Importers of goods covered by CBAM to the EU cleared for free circulation in the EU or stored for export to a third country for final consumption.
- Producers in third countries of goods covered by CBAM.
- When implemented in Norway; Importers of goods covered by CBAM to Norway / the EEA.
Status: In force
- The regulation of CBAM entered into force in the EU on 16 May 2023, and the transitional phase started on 1 October 2023 and will continue until 31 December 2025. A permanent system for CBAM (CBAM Definitive Regime) will enter into force in the EU on 1 January 2026, and the first report must be submitted 31 May 2027 for the calendar year 2026.
- The Norwegian Government aims to implement CBAM in Norway from 1 January 2027. On 24 October 2025, the Norwegian Government submitted a proposal for a new act for public consultation (the Norwegian CBAM Act). The bill implements Regulation (EU) 2023/956 (the CBAM Regulation) in Norwegian law, establishes powers to administer the CBAM Regulation via secondary legislation, and provides for transposition of expected delegated and implementing acts once they are incorporated into the EEA Agreement following consultations between EEA/EFTA states and the European Commission. Implementing CBAM will also require changes to Norwegian customs legislation. The Government aims to implement the CBAM regime from 2027. Rules on applying for and granting authorised CBAM declarant status are planned to come into force earlier so entities can obtain authorisation prior to 2027. The consultation deadline is 2 January 2026.
- On 10 September 2025 the European parliament adopted simplifications to the CBAM, the so-called "Omnibus I", where the aim is to simplify and strengthen the implementation of CBAM by simplifying the sustainability reporting, target the companies that are more likely to have climate-damaging emissions, and not to burden smaller companies and occasional importers with minimal emissions. The amended law sets a mass-based threshold for importers importing less than 50 tonnes of goods in key sectors, which will exempt 90% of importers from the obligation to report under CBAM. The rules on imports still covered by the CBAM are also simplified, regarding for instance: the authorisation process, the calculation of emissions, verification rules and the financial liability of authorised CBAM declarants. The same simplifications will apply in Norway when CBAM is implemented. On 18 June 2025, the European Parliament and the Council reached an agreement on the Commission's proposal to simplify and strengthen CBAM. Immediately after the agreement was reached, the Commission effected a public consultation from 1 July 2025 until 26 August 2025, where the aim was to gather all opinions from relevant audience on possible extensions of CBAM to downstream products (i.e. products that are further down the value chain of the goods currently in scope), anti-circumvention measures, electricity rules and their potential impacts. The Commission is expected to present its proposed legislation during fall 2025. The amended Regulation was officially published in the Official Journal of the European Union on 20 October 2025.
- In 2026, the Commission will further assess whether the scope of CBAM, i.e. the goods covered by CBAM, should be extended.
Relation to other initiatives and regulations
CBAM is an initiative pursuant to the Paris Agreement and shall complement EU ETS. The gradual introduction of CBAM is aligned with the phase-out of the allocation of free allowances under the EU ETS.
Thommessen's comments
The Norwegian Government supports the EU's implementation of CBAM, and has published a proposal for implementation of CBAM in Norway through a Norwegian CBAM Act. The Government aims to implement CBAM by 1 January 2027. Rules on applying for and granting authorised CBAM declarant status are planned to come into force earlier so entities can obtain authorisation prior to 2027.
The Ministry of Climate and Environment and the Norwegian Environment Agency will have the main responsibility for administering CBAM in Norway. The Customs Authority and the Norwegian Tax Administration will also have central roles in the administration of CBAM in Norway.
Norwegian businesses importing goods to the EEA covered by CBAM should follow the legislative process, and consider the potential implications of CBAM for their business and measures to adapt and mitigate negative consequences to support the climate initiative and avoid unnecessary tax leakage. Please feel free to contact us if you have any questions in this regard.