The European Commission has proposed to introduce a carbon border adjustment mechanism (⁠CBAM⁠) in order to improve Carbon Leakage protection for European energy-intensive industries which are subject to the carbon price in EU ETS. This report details the Commission’s proposed administrative structure as well as its implications for Member States. It analyses the tasks, responsibilities and interactions of importers, third-country installations, verifiers, and authorities and discusses the key challenges going forward.