What are the key dates and obligations in implementation

Which sectors will initially be affected?







How will CBAM be implemented?

CBAM will be implemented in two stages. The CBAM has a transitional period that started on October 1, 2023, and runs until 31 December 2025. The purpose of the transitional phase is to provide a learning period for all stakeholders. During this phase, importers must only submit CBAM reports, with no financial adjustments necessary. Importers of CBAM goods must submit quarterly reports, which contain details on the quantity of goods imported, direct and indirect GHG emissions embedded in the products and any carbon price paid in the country of origin. There are, however, penalties for non-compliance. These may range between EUR 10 and 50 /t of unreported emissions. Penalties apply where the declarant has failed to submit a CBAM report or where it is incorrect or incomplete and has not been corrected after the competent authority initiated the correction procedure. CBAM reports need to be filed within a month after the end of the reporting quarter, with an additional month to correct any possible errors in the submitted report.

In its definitive phase, which starts on January 1, 2026, the obligation of CBAM reporting continues; only the reports will be submitted annually. Emissions verification requirements will also come into force in this period. However, the main change is that importers will be required to start purchasing and surrendering CBAM certificates. The number of CBAM certificates to be surrendered increases gradually with the reduction of free allocations according to the EU ETS. Starting in 2026, importers will be required to surrender CBAM certificates for 2.5% of embedded emissions for their CBAM products. This percentage will incrementally increase yearly until it reaches 100% in 2034, aligning with the anticipated elimination of free allocations in the EU ETS. The scope of CBAM products is expected to gradually completely align with the EU ETS by the end of 2030. Penalties for non-compliance will increase and may amount to EUR 100/t of undeclared emissions.

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Our Team

Gecić Law, widely recognized for its knowledge and experience in EU Law, international trade and competition matters, is proud to be one of the few law firms in the region with extensive experience advising the public and private sectors on the implications of CBAM and compliance with this groundbreaking regulation. For more information, please contact our legal team that will be pleased to provide further assistance.

Bogdan Gecić

Founder & Managing Partner

Hristina Kosec

Partner | Head of Operations

Ivana Stojanović Raišić


Branko Gabrić