Review of CBAM Reports Without Actual Emission Data According to Belgian Standards

The Carbon Border Adjustment Mechanism obliges companies to obtain and report the actual emission data of imported goods. But how do the competent authorities in other countries respond when companies do not comply with the legal obligations? The competent authority in Belgium has published more detailed information on what it expects and the standards it uses, among other things, in reviewing CBAM reports. This can also serve as a good reference point for affected companies in other countries.

Imminent Sanctions

It should be noted that the Belgian authority does not allow every economic operator to continue using standard values indefinitely. The further reporting with default values is intended as a narrow exception to the rule. Therefore, the authority will impose sanctions if it considers the submitted evidence and efforts insufficient. The regulation provides for a sanction of €10 to €50 per missing or incorrectly reported tonne of CO2 emissions. This can quickly lead to a significant sum with corresponding import quantities.

Comparison with Other Economic Operators

A particularly interesting point is that the Belgian authority indicates it compares the efforts and information with those of other economic operators. If others have succeeded in obtaining emission data from the same manufacturers in the third country, this will negatively impact a company that claims it has tried in vain with the same manufacturer.

Other Possibility for Correct Reporting

It also checks whether proper monitoring and measurement systems exist in the relevant third countries. This is also a surprisingly specific indication. For companies, this means that they are not only urged to contact their manufacturers. They should also check whether a system for emission monitoring is already established in the manufacturer's country. If so, economic operators may and should rely on the emission data collected under this system. These data may still be used until December 31, 2024.

Necessary Improvements

Another criterion for the Belgian authority is possible improvements in the companies' processes. It is expected that companies make adjustments where actual emission data could not be obtained in the past. So, even if the authority initially exceptionally allows further use of default values, sanctions may be imposed in a later CBAM report if no improvements are made in the medium and long term to obtain the missing emission data.

Uniform Standard

For Belgian economic operators, there are relatively early transparent guidelines to follow. It would be desirable if the competent authorities in other member states also communicated similar standards. Only in this way can companies set up their processes with planning security. Ideally, the authorities would coordinate with each other. The European internal market would benefit if not only the same regulations but also the same or at least comparable standards and controls prevailed. This can also provide orientation for companies in other countries, even if the respective competent national authorities will, of course, apply their own standards.

Support in Compliance

We are happy to assist you in obtaining the actual emission data so that you don't have to deal with the standards for sanctions at all. However, if despite the greatest efforts, it is not possible to obtain them, we will also help you meet the authorities' requirements. Feel free to contact us directly at helge@kolum.earth.

Best regards,

Helge Wieggrefe