How will CBAM address potential circumvention attempts?

Monitoring and anti-circumvention measures

The European Commission, in collaboration with national authorities, will continuously monitor trade flows and reported emissions to identify potential circumvention practices.

This could include resource shuffling (redirecting low-carbon production to the EU while selling high-carbon products elsewhere) or slight modifications of products to avoid CBAM obligations.

The Commission has the authority to propose amendments to the CBAM Regulation to address identified circumvention risks. Additionally, importers found to be engaging in circumvention practices may face severe penalties.