Baseline emission values for calculations will be published in the fourth quarter of 2025
Benchmarks for CBAM will be available in 2026 after the revision of the European ETS benchmarks. This was discussed at a thematic webinar organized by the Japan Business Council in Europe, according to Hendrik Schuldt, CEO of the consulting company carboneer.
He noted that representatives of the European Commission shared updates on the legislative roadmap that will regulate the mechanism.
The EC will set standard benchmarks that will reflect the typical production process for each product subject to CBAM. Verified supplier data can be used to demonstrate different production processes, which may lead to the application of different benchmarks. Ultimately, these benchmarks will reflect the amount of free allowances that a manufacturer could receive if production took place in the EU.
Hendrik Schuldt notes that the rules for calculating embedded emissions for imported goods will differ slightly from those applied during the transition phase.
The baseline carbon emission values (default values) for each country will be published in the fourth quarter of this year as an annex to the implementing regulation on emissions calculation.
The verification regulation will be in line with the draft that was leaked last week. Manufacturers from countries outside the EU will report emissions using standardized CBAM methodologies. Risk assessments, site visits (real or virtual), and detailed data analysis will be carried out by verifiers. Material inaccuracies or discrepancies will result in the exclusion of data from importers’ declarations, while immaterial ones must be corrected before the final verification report is issued. Verification will be required in each reporting period, typically annually.
The EC will use the next year to collect data on average carbon prices, discounts, and compensation applied when making carbon payments in the countries of origin of the goods. Standard carbon prices will be published in 2027 through the CBAM registry.
As for the extension of the cross-border carbon adjustment mechanism, it will not come into force until 2027; a decision on the goods to be covered by it has not yet been made. The EC is also considering a “scrap loophole” (a situation where imported goods made from scrap are not actually subject to CBAM payments), but this issue is planned to be resolved with the expansion of the scope of products subject to CBAM.
The European steel market has expressed disappointment at the late determination of the CBAM benchmarks, which are essential for calculating the specific costs of embedded emissions of imported steel products in 2026.