Overview of the regulations
The regulations define the roles and responsibilities of local authorities. They also set out the procedures for enforcement and the application of administrative penalties in relation to CBAM non-compliance.
Key authorities
The Climate Action Authority is the designated competent authority responsible for supervising and enforcing CBAM in Malta.
The National Accreditation Board (Malta) will accredit CBAM verifiers. These are independent entities that verify the embedded emissions of goods falling in scope of CBAM.
Non-compliance and penalties
The regulations introduce an administrative penalty framework which is aligned with the existing EU Emissions Trading System (EU ETS).
In terms of the Regulations, fines are set at €100 per tonne of CO₂ equivalent where the corresponding allowances have not been surrendered. This amount will be adjusted annually in line with inflation, based on the Harmonised European Index of Consumer Prices.
Payment of these fines does not absolve companies from the obligation to surrender the appropriate allowances. Penalties are therefore imposed in addition to fulfilling compliance requirements.
The Climate Action Authority will issue penalty notifications via judicial letter. Affected parties may appeal decisions before the Administrative Review Tribunal within 20 days of notification.
Impact on your business
These regulations provide clear direction on how CBAM will be administered and enforced in Malta.
If your business falls within scope of CBAM, you should review your internal processes, control, and systems so that you can meet the new requirements. It will be important to keep complete and accurate records of the carbon emissions linked to your imported products.
Proactively identifying and addressing any compliance gaps will help you reduce financial risks and build resilience as regulatory landscape continues to develop.
How can we help?
At PwC Malta, we can support you with managing and enhancing your sustainability reporting. Preparing for CBAM and future environmental regulations will help your business remain compliant and resilient amid global changes.
We bring together specialists from across our services so we can support you with tailored, practical advice, including:
- Emissions measurement, reporting, and verification
- CBAM compliance strategy and implementation
- Sustainable supply chain management and circular economy practices
- Tax, legal, and regulatory advisory assistance
- Technology tools for data management and regulatory reporting, including CBAM risk assessment tools
If you would like to discuss how the new CBAM regulations could affect your business and explore how we can work with you, please contact PwC Malta.
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