On 10 May 2023 the European Union (“co legislators signed the so called Carbon Border Adjustment Mechanism Regulation (“CBAM”). CBAM is the European regulation that imposes ( a reporting obligation, and ( a carbon tax on EU imports of certain goods in order to reduce carbon emissions.
CBAM officially entered into force on 17 May 2023 namely the day following its publication in the EU Official Journal (i.e., on 16 May 2023). CBAM itself applies in its transitional phase since 1 October 2023 and will be fully in place as of 1 January 2026
CBAM will initially apply to imports of certain goods only, including hydrogen.
Ammonia, a potential medium for hydrogen storage, is also covered by CBAM as explained in this Report.
Given that the scope of CBAM includes hydrogen, this Greenberg Traurig, LLP (“GT”) Report sets out some possible implications of CBAM for the HyScaling Project.