Ogtay Yagubov: Starting from 2026, emissions will be taken into account for products supplied to EU

The EU's adopted climate policy tool CBAM (Carbon Border Adjustment Mechanism) will initially affect electricity, fertilizer, iron-steel, aluminum, cement, and hydrogen sectors, Ogtay Yagubov, Deputy Chief of the Tax Policy Main Department of the State Tax Service under the Azerbaijani Ministry of Economy, said at a seminar themed "Green Climate Finance and Carbon Pricing Policy," Report informs.

According to Yagubov, starting from 2026, there will be registration and payment obligations for supplied products falling under CBAM's scope: "Carbon emissions will be considered when importing these products into EU countries. In the long-term perspective, CBAM's scope is planned to expand to cover more sectors."

Yagubov added that reporting is mandatory for importers, and in cases where reports are not submitted or are submitted in a distorted form, fines between 10-50 euros per ton of incorrectly reported emissions will be applied.

Currently, CBAM is in a transition phase with a monitoring and reporting period covering October 1, 2023 - January 31, 2026.