With the 17 August release of CBAM implementing regulation, third country importers and non-EU producers have clarity for how they will be required to monitor and report emissions during the CBAM transitional phase. The legislation, accompanying annexes, and subsequent guidance documents provide long-awaited details for how embedded emissions will be calculated. This will have no immediate market implications for the EU ETS, but provides clarity for a policy that will impact carbon prices in the long-term.
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