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CBAM: Protecting Polish Industry from EU Climate Levy

by Priya Shah – Business Editor

Polish ‌Parliament Approves Carbon Border Adjustment ⁣Mechanism (CBAM)

Warsaw, Poland – The Polish Sejm has passed ‍legislation implementing the European Union’s Carbon border Adjustment Mechanism (CBAM), a landmark policy designed to level ⁢the ⁣playing field for domestic industries facing ‌competition⁤ from countries wiht less stringent climate regulations. the new law, approved⁤ [date not specified in source, but implied to be recent], will initially require importers of ⁤carbon-intensive ‌goods to submit quarterly reports detailing their imports and associated emissions.

CBAM aims to ⁢prevent “carbon leakage”-the relocation of production to nations with lower environmental standards-and safeguard the competitiveness of key Polish sectors like steel, cement, and chemicals. From 2026, importers ⁤will be required to declare the amount of imported goods and the emissions generated during their production, later paying a levy proportional to the cost of CBAM certificates. This mechanism is intended to‍ encourage cleaner production ⁣processes globally and support investment in low-emission‌ technologies within the EU.

The legislation‍ is a crucial step in implementing a system to protect European industry, ⁣with ongoing work ⁢at the EU level focused on⁤ refining and strengthening the mechanism. By placing a carbon price on ​imported goods, CBAM ensures that domestic producers are not disadvantaged by cheaper ⁢imports produced with fewer environmental controls.

The transition period,‌ extending until the end of 2025, allows importers to​ prepare for the full implementation of the CBAM reporting requirements. The Act signals Poland’s ​commitment to the EU’s climate goals and its ​dedication to fostering⁢ a⁣ lasting industrial future.

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