Report to Parliament and Council before 1 January 2028 and biennially thereafter on CBAM's operation, covering carbon leakage, internal-market and price effects, governance, circumvention practices, penalties and per-country emission intensity.

‘Before 1 January 2028, as well as every two years thereafter, the Commission shall present a report to the European Parliament and to the Council on the application of this Regulation and functioning of the CBAM. This report may, where appropriate, be accompanied by a legislative proposal or implementing or delegated acts adopted pursuant to this Regulation. The report shall contain at least the following: (a) an assessment of the impact of the CBAM on: (i) carbon leakage, including in relation to exports; (ii) the sectors covered; (iii) internal market, economic and territorial impact throughout the Union; (iv) inflation and the price of commodities; (v) the effect on industries using goods listed in Annex I; (vi) international trade, including resource shuffling; and (vii) LDCs. (b) an assessment of: (i) the governance system, including an assessment of the implementation and administration of the guarantees and the authorisation of CBAM declarants by Member States; (ii) the scope of this Regulation, including of the possibility to extend the scope of this Regulation to additional goods at risk of carbon leakage; (iia) the suitability of implementing acts and delegated acts adopted pursuant to this Regulation; (iib) the suitability of the methods for setting default values and the mark-up applied to the default values; (iii) practices of circumvention; (iv) the application of penalties in Member States; (v) the application of the single mass-based threshold, including the possibility of increasing that threshold and of introducing a supplementary consignment-based threshold; (c) results of investigations and penalties imposed; (d) aggregated information on the emission intensity for each country of origin for the different goods listed in Annex I.;