Norway joins the EU CBAM

The European Carbon Border Adjustment Mechanism applies as a European legal regulation initially in the member states of the European Union. Iceland, Norway, Liechtenstein and Switzerland have been granted exemptions for imports into the EU.

The EFTA states

The European Free Trade Association currently comprises these four states. It was originally founded in 1960. It was intended to promote the growth and prosperity of its members and to act as a counterweight to the European Community, the forerunner of the EU. However, many of the original founding members, such as Austria and Denmark, have since joined the EU. The only remaining members are Norway, Liechtenstein, Iceland and Switzerland.

Exceptions for the EFTA states

An exemption from the CBAM Regulation applies to goods imported into the European Union from EFTA states - but only if the origin of the imported goods is actually one of the EFTA states. The exemption therefore does not apply if the goods are brought into the European Union via one of the EFTA states, but actually originate from another third country in terms of trade policy.

Background to the exemption

CBAM is intended to tax imported goods in the same way as if they had been produced in the European Union in the first place and were therefore subject to the local CO2 price. This is intended to reduce competitive disadvantages and ultimately prevent the migration of emissions. Such pricing is therefore not necessary if the goods were already subject to the same pricing during their production. This is the case for Liechtenstein, Norway and Iceland, as our European emissions trading system is also in force there. This also applies to Switzerland, as it has fully linked its own emissions trading system with ours.

Norway joins CBAM

Norway is the first EFTA state to announce that it will join the European Carbon Border Adjustment Mechanism. This means that in future, Norwegian companies importing from third countries will also be obliged to report on the emissions associated with the imported goods and purchase CBAM certificates accordingly. The date has not yet been set and depends on coordination with the EU, among other things. The envisaged date is 1.1.2026 and thus the starting point of the regulatory phase.

Outlook

Norway is responding to pressure from the business community and industry and trade associations. They fear that otherwise exports to the EU will become more expensive in future and that the competitive situation of companies will deteriorate as a result. It remains to be seen and hoped that the other EFTA states will also follow this step. The European market is also of corresponding importance to them. It should also be borne in mind that the UK CBAM has been announced for 2027. Otherwise they could also face disadvantages here.

Support

If you need support in navigating the changing regulatory requirements or complying with the CBAM reporting obligation with actual emissions data, please contact us directly (helge@kolum.earth). We are here for you! Best regards Helge Wieggrefe