The Carbon Border Adjustment Mechanism (Implementing) Regulations, 2026, constitute subsidiary legislation enacted under Malta’s Climate Action Act (Cap. 643) to give domestic effect to Regulation (EU) 2023/956, which establishes the EU’s Carbon Border Adjustment Mechanism (CBAM). The regulations are deliberately narrow in scope: rather than restating the substantive obligations of the EU Regulation, they focus on the mechanism for imposing and enforcing administrative penalties, thereby embedding the EU framework within Malta’s administrative and judicial architecture. The regulations apply to authorised CBAM declarants and any persons falling within the scope of Regulation (EU) 2023/956 - including importers and authorised representatives - who are subject to obligations concerning reporting, verification of embedded emissions, submission of CBAM declarations, and surrender of CBAM certificates. The EU Regulation is to apply directly and bindingly, with Maltese law governing its enforcement and supervision. The Climate Action Authority is designated as the competent authority for enforcement purposes under Article 11 of the EU Regulation, with powers to delegate functions to authorised public officers and a duty to cooperate and exchange information with Maltese authorities (customs, taxation, environmental protection), other Member States, and the European Commission. Accreditation of verifiers is entrusted to the National Accreditation Board (Malta). Enforcement is structured around administrative penalties. Non-compliance renders a declarant or person liable to the measures and penalties stipulated in Article 16(3) and (4) of Directive 2003/87/EC and the relevant Maltese emissions trading regulations. Procedural safeguards are built in: the Authority must notify the alleged breach in writing by judicial letter, specifying the breach, reasons, penalty amount, due date, payment action, and appeal rights. Appeals lie to the Administrative Review Tribunal within twenty days of service, with further appeal to the Court of Appeal in its Inferior or Superior Jurisdiction depending on the penalty’s value relative to the jurisdictional threshold of the Court of Magistrates (Malta). Unappealed or confirmed penalties constitute an executive title under article 253 of the Code of Organisation and Civil Procedure. Finally, the regulations insert a new item into the Second Schedule of the Administrative Justice Act, designating the competent court for CBAM penalty appeals.
Malte · 2026-09-25