LegalizeRegulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing a carbon border adjustment mechanism (Text with EEA relevance)
The competent authority shall register the notification to, and the response from, the authorised CBAM declarant in the CBAM registry.
Article 23
Repurchase of CBAM certificates
Where an authorised CBAM declarant so requests, the Member State where that authorised CBAM declarant is established shall repurchase the excess CBAM certificates remaining on the account of the declarant in the CBAM registry after the certificates have been surrendered in accordance with Article 22.
The Commission shall repurchase the excess CBAM certificates through the common central platform referred to in Article 20 on behalf of the Member State where the authorised CBAM declarant is established. The authorised CBAM declarant shall submit the repurchase request by 31 October of each year during which CBAM certificates were surrendered.
The number of CBAM certificates subject to repurchase as referred to in paragraph 1 shall be limited to the total number of CBAM certificates that the authorised CBAM declarant had an obligation to purchase pursuant to Article 22(2) during the calendar year of the purchase of the CBAM certificates.
Where an authorised CBAM declarant who has been purchasing CBAM certificates in a calendar year on the basis of an expectation of exceeding the single mass-based threshold does not exceed such a threshold, all those CBAM certificates shall be repurchased upon request of the authorised CBAM declarant pursuant to paragraph 1 of this Article.
2a. By way of derogation from paragraph 2, CBAM certificates purchased in 2027 in respect of the embedded emissions for the year 2026 may only be repurchased in 2027.
The repurchase price for each CBAM certificate shall be the price paid by the authorised CBAM declarant for that certificate at the time of purchase.
Article 24
Cancellation of CBAM certificates
On 1 November of each year, the Commission shall cancel any CBAM certificates that were purchased during the year before the previous calendar year and that remained in the account of an authorised CBAM declarant in the CBAM registry. Those CBAM certificates shall be cancelled without any compensation.
By way of derogation from paragraph 1, on 1 November 2027, the Commission shall cancel any CBAM certificates purchased in respect of the embedded emissions for the year 2026. Those CBAM certificates shall be cancelled without any compensation.
Where the number of CBAM certificates to be surrendered is contested in a pending dispute in a Member State, the Commission shall suspend the cancellation of the CBAM certificates to the extent corresponding to the disputed amount. The competent authority of the Member State where the authorised CBAM declarant is established shall communicate without delay any relevant information to the Commission.
CHAPTER V RULES APPLICABLE TO THE IMPORTATION OF GOODS
Article 25
Rules applicable to the importation of goods
Without prejudice to Article 2a, the customs authorities shall not allow the importation of goods by any person other than an authorised CBAM declarant.
The customs authorities shall periodically and automatically, in particular by means of the surveillance mechanism established pursuant to Article 56(5) of Regulation (EU) No 952/2013, communicate to the Commission specific information on the goods declared for importation. That information shall include the EORI number or the form of identification declared in accordance with Article 6(2) of Delegated Regulation (EU) 2015/2446, of the importer or of the authorised CBAM declarant as well as the CBAM account number of the authorised CBAM declarant, the eight-digit CN code of the goods, the quantity, the country of origin, the date of the customs declaration and the customs procedure. Where the importer has no EORI number, the customs authorities shall also communicate the name, address and, where available, contact information of the importer to the Commission.
The Commission shall communicate the information referred to in paragraph 2 of this Article periodically to the competent authority of the Member State where the authorised CBAM declarant or the importer is established and shall, for each CBAM declarant, cross-check that information with the data in the CBAM registry pursuant to Article 14.
The customs authorities may communicate, in accordance with Article 12(1) of Regulation (EU) No 952/2013, confidential information acquired by the customs authorities in the course of performing their duties, or provided to the customs authorities on a confidential basis, to the Commission and to the competent authority of the Member State that has granted the status of the authorised CBAM declarant or to the competent authority of the Member State where the authorised CBAM declarant or importer is established.
Regulation (EC) No 515/97 shall apply mutatis mutandis to this Regulation.
The Commission is empowered to adopt implementing acts defining the scope of information and the periodicity, timing and means for communicating that information pursuant to paragraph 2 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Article 25a
Monitoring and enforcement of the single mass-based threshold
The Commission shall monitor the imports of goods for the purpose of monitoring the compliance with the single mass-based threshold.
The competent authorities of the Member State where the importer is established may also monitor the compliance with the single mass-based threshold.
The Commission shall periodically and automatically exchange with competent authorities the information necessary for the monitoring of importers via the CBAM registry. Such information shall include a list of importers that exceed 90 % of the single mass-based threshold.
Where the Commission considers, based on a preliminary assessment and the information that the customs authorities have communicated to the Commission pursuant to Article 25(2), that an importer has exceeded the single mass-based threshold, it shall communicate that information as well as the basis for its preliminary assessment to the competent authority of the Member State where the importer is established.
The competent authority may request that the importer or the Commission provides documentary evidence necessary to assess whether the importer has exceeded the single mass-based threshold. Where the documentary evidence is insufficient to assess whether the importer has exceeded that threshold, the competent authorities may request additional documentary evidence from the customs authorities if such evidence is available.
Where the competent authority concludes that an importer that is not an authorised CBAM declarant has exceeded the single mass-based threshold, it shall without undue delay adopt a decision to that effect. The decision shall state the reasons on which it is based and shall include information on the right to appeal. The competent authority shall inform the importer of the obligations applicable under this Regulation including, where applicable, the obligation to obtain the status of an authorised CBAM declarant in accordance with Article 5 prior to importing any further goods. The competent authority shall also notify the customs authorities and the Commission of that decision via the CBAM registry.
Where an importer is represented by one or more indirect customs representatives and exceeds the single mass-based threshold, the competent authority shall inform the indirect customs representatives appointed thereof in accordance with Article 5(1a) or 5(2).
The submission of an appeal against a decision determining that the importer has exceeded the single mass-based threshold shall not have suspensive effect.
For the purpose of determining whether an importer has exceeded the single mass-based threshold, a competent authority shall disregard a practice, arrangement or a series thereof which has been put into place for the main purpose or one of the main purposes of falling below the single mass-based threshold and which is non-genuine.
A practice, arrangement or a series thereof shall be regarded as non-genuine where, taking into account all relevant facts and circumstances, it cannot be considered to have been put in place for valid commercial reasons related to the economic activity of the importer.
For the purposes of Article 17(2), point (a), and Article 26(2a), where the competent authority concludes that the importer has engaged in a practice, arrangement, or a series thereof, that is regarded to be non-genuine, the importer shall be considered to have been involved in a serious infringement of this Regulation.
For the purpose of the monitoring under this Article, the Commission shall periodically, at least once per calendar year or whenever necessary, identify specific risk factors and points for attention, based on a risk analysis in relation to the single mass-based threshold, taking into account information contained in the CBAM registry, data communicated by customs authorities in accordance with Article 25 and other relevant information sources, including irregularities identified as a result of the controls carried out in accordance with Article 15(1). Those risk factors and points for attention shall be communicated to the competent authorities and, where relevant, the customs authorities.
CHAPTER VI ENFORCEMENT
Article 26
Penalties
An authorised CBAM declarant who fails to surrender, by 30 September of each year, the number of CBAM certificates that corresponds to the emissions embedded in goods imported during the preceding calendar year shall be held liable for the payment of a penalty. Such a penalty shall be identical to the excess emissions penalty set out in Article 16(3) of Directive 2003/87/EC and increased pursuant to Article 16(4) of that Directive, applicable in the year of importation of the goods. Such a penalty shall apply for each CBAM certificate that the authorised CBAM declarant has not surrendered.
1a. By way of derogation from paragraph 1 of this Article, where an authorised CBAM declarant fails to surrender the correct number of CBAM certificates as a result of incorrect information provided by a third party, namely an operator, a verifier or an independent person certifying the carbon price documentation referred to in Article 9(2), the competent authority may reduce the penalty referred to in paragraph 1 of this Article. The penalty thus imposed shall be effective, proportionate and dissuasive and shall take into account in particular the duration, gravity, scope, intentional nature or repetition of the non-compliance or the level of cooperation of the authorised CBAM declarant with the competent authority.
Where a person other than an authorised CBAM declarant introduces goods into the customs territory of the Union without complying with the obligations under this Regulation, that person shall be held liable for the payment of a penalty. Such a penalty shall be effective, proportionate and dissuasive and shall, depending in particular on the duration, gravity, scope, intentional nature and repetition of such non-compliance and the level of cooperation of the person with the competent authority, be an amount from three to five times the penalty referred to in paragraph 1, applicable in the year of introduction of the goods, for each CBAM certificate that the person has not surrendered.
2a. Paragraph 2 shall also apply to importers other than authorised CBAM declarants, where they exceed the single mass-based threshold. For that purpose, the entirety of the emissions embedded in the goods imported by such an importer in the relevant calendar year shall be taken into account. The payment of the penalty shall release the importer from the obligation to submit a CBAM declaration and to surrender CBAM certificates in respect of those imports.
By way of derogation from the first subparagraph of this paragraph, the competent authority may reduce the penalty provided in paragraph 2 of this Article where an importer exceeded the single mass-based threshold by no more than 10 % of that threshold or in cases referred to in Article 17(7a). Such a penalty shall be effective, proportionate and dissuasive and shall not be lower than the penalty provided in paragraph 1. The payment of the penalty shall release the importer from the obligation to submit a CBAM declaration and to surrender CBAM certificates in respect of those imports.
The payment of the penalty in accordance with paragraphs 1 and 1a shall not release the authorised CBAM declarant from the obligation to surrender the outstanding number of CBAM certificates in a given year.
If the competent authority determines, including in light of the preliminary calculations made by the Commission in accordance with Article 19, that an authorised CBAM declarant has failed to comply with the obligation to surrender CBAM certificates as set out in paragraph 1 of this Article, or that a person has introduced goods into the customs territory of the Union without complying with the obligations under this Regulation as set out in paragraph 2 of this Article, the competent authority shall impose the penalty pursuant to paragraph 1 or 2 of this Article, as applicable. To that end, the competent authority shall notify the authorised CBAM declarant or, where paragraph 2 of this Article applies, the person:
- (a) that the competent authority has concluded that the authorised CBAM declarant or the person referred to in paragraph 2 of this Article failed to comply with the obligations under this Regulation;
- (b) of the reasons for its conclusion;
- (c) of the amount of the penalty imposed on the authorised CBAM declarant or on the person referred to in paragraph 2 of this Article;
- (d) of the date from which the penalty is due;
- (e) of the action that the authorised CBAM declarant or the person referred to in paragraph 2 of this Article is to take to pay the penalty; and
- (f) of the right of the authorised CBAM declarant or of the person referred to in paragraph 2 of this Article to appeal.
4a. For the purposes of paragraphs 1 and 2 of this Article, the competent authority shall calculate the total number of CBAM certificates that should have been surrendered, based on the net mass of the imported goods and by reference to the embedded emissions determined by default values in accordance with the methods set out in Annex IV and taking into account the adjustment for free allocation as referred to in Article 31.
Where the penalty has not been paid by the due date referred to in paragraph 4, point (d), the competent authority shall secure payment of that penalty by all means available to it under the national law of the Member State concerned.
Member States shall communicate the decisions on penalties referred to in paragraphs 1 and 2 to the Commission and shall register the final payment referred to in paragraph 5 in the CBAM registry.
Article 27
Circumvention
The Commission shall take action in accordance with this Article, based on relevant and objective data, to address practices of circumvention of this Regulation.
Practices of circumvention shall be defined as a change in the pattern of trade in goods, which stems from a practice, process or work, for which there is insufficient due cause or economic justification other than to avoid, wholly or partially, any of the obligations laid down in this Regulation. Such practice, process or work may consist of, but is not limited to:
- (a) slightly modifying the goods concerned to make those goods fall under CN codes which are not listed in Annex I, except where the modification alters their essential characteristics;
- (b) artificially splitting imports, including via non-genuine arrangements, to avoid exceeding the single mass-based threshold.
The Commission shall continuously monitor the situation at Union level with a view to identifying practices of circumvention, including by way of market surveillance or on the basis of any relevant source of information, such as submissions by, and reporting from, civil society organisations.
A Member State or any party that has been affected by, or has benefited from, any of the situations referred to in paragraph 2 may notify the Commission if it is confronted with practices of circumvention. Interested parties other than directly affected or benefited parties, such as environmental organisations and non-governmental organisations, which find concrete evidence of practices of circumvention may also notify the Commission.
The notification referred to in paragraph 4 shall state the reasons on which it is based and shall include relevant data and statistics to support the claim of circumvention of this Regulation. The Commission shall initiate an investigation into a claim of circumvention either where it has been notified by a Member State, or by an affected, benefited or other interested party, provided that the notification meets the requirements referred to in this paragraph, or where the Commission itself determines that such an investigation is necessary. In carrying out the investigation, the Commission may be assisted by the competent authorities and customs authorities. The Commission shall conclude the investigation within nine months from the date of notification. Where an investigation has been initiated, the Commission shall notify all competent authorities.
Where the Commission, taking into account the relevant data, reports and statistics, including those provided by customs authorities, has sufficient reasons to believe that the circumstances referred to in paragraph 2, point (a) of this Article, are occurring in one or more Member States by way of an established pattern, it is empowered to adopt delegated acts in accordance with Article 28 to amend the list of goods in Annex I by adding the relevant slightly modified products referred to in paragraph 2, point (a), of this Article, for anti-circumvention purposes.
CHAPTER VII EXERCISE OF THE DELEGATION AND COMMITTEE PROCEDURE
Article 28
Exercise of the delegation
The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
The power to adopt delegated acts referred to in Articles 2(10) and (11), Article 2a(3), Article 18(3), Article 20(5a) and (6) and Article 27(6) shall be conferred on the Commission for a period of five years from 20 October 2025. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for further periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.
The delegation of power referred to in Article 2(10) and (11), Article 2a(3), Article 18(3), Article 20(5a) and (6) and Article 27(6) may be revoked at any time by the European Parliament or by the Council.
A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated act already in force.
Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Inter-institutional Agreement of 13 April 2016 on Better Law-Making.
As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
A delegated act adopted pursuant to Article 2(10) and (11), Article 2a(3), Article 18(3), Article 20(5a) and (6) or Article 27(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Article 29
Committee procedure
The Commission shall be assisted by the CBAM Committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
CHAPTER VIII REPORTING AND REVIEW
Article 30
Review and reporting by the Commission
The Commission, in consultation with relevant stakeholders, shall collect the information necessary with a view to extending the scope of this Regulation as indicated in and pursuant to paragraph 2, point (a), and to developing methods of calculating embedded emissions based on environmental footprint methods.
Before the end of the transitional period referred to in Article 32, the Commission shall present a report to the European Parliament and to the Council on the application of this Regulation.
The report shall contain an assessment of:
- (a) the possibility to extend the scope to:
- (i) embedded indirect emissions in the goods listed in Annex II;
- (ii) embedded emissions in the transport of the goods listed in Annex I and transportation services;
- (iii) goods at risk of carbon leakage other than those listed in Annex I, and specifically organic chemicals and polymers;
- (iv) other input materials (precursors) for the goods listed in Annex I;
- (b) the criteria to be used to identify goods to be included in the list in Annex I to this Regulation based on the sectors at risk of carbon leakage identified pursuant to Article 10b of Directive 2003/87/EC; that assessment shall be accompanied by a timetable ending in 2030 for the gradual inclusion of the goods within the scope of this Regulation, taking into account in particular the level of risk of their respective carbon leakage;
- (c) the technical requirements for calculating embedded emissions for other goods to be included in the list in Annex I;
- (d) the progress made in international discussions regarding climate action;
- (e) the governance system, including the administrative costs;
- (f) the impact of this Regulation on goods listed in Annex I imported from developing countries with special interest to the least developed countries as identified by the United Nations (LDCs) and on the effects of the technical assistance given;
- (g) the methodology for the calculation of indirect emissions pursuant to Article 7(7) and point 4.3 of Annex IV.
At least one year before the end of the transitional period, the Commission shall present a report to the European Parliament and to the Council that identifies products further down the value chain of the goods listed in Annex I that it recommends to be considered for inclusion within the scope of this Regulation. To that end, the Commission shall develop, in a timely manner, a methodology that should be based on relevance in terms of cumulated greenhouse gas emissions and risk of carbon leakage.
The reports referred to in paragraphs 2 and 3 shall, where appropriate, be accompanied by a legislative proposal by the end of the transitional period, including a detailed impact assessment, in particular with a view to extending the scope of this Regulation on the basis of the conclusions drawn in those reports.
Every two years from the end of the transitional period, as part of its annual report to the European Parliament and to the Council pursuant to Article 10(5) of Directive 2003/87/EC, the Commission shall assess the effectiveness of the CBAM in addressing the carbon leakage risk of goods produced in the Union for export to third countries which do not apply the EU ETS or a similar carbon pricing mechanism. The report shall in particular assess the development of Union exports in CBAM sectors and the developments as regards trade flows and the embedded emissions of those goods on the global market. Where the report concludes that there is a risk of carbon leakage of goods produced in the Union for export to such third countries which do not apply the EU ETS or a similar carbon pricing mechanism, the Commission shall, where appropriate, present a legislative proposal to address that risk in a manner that complies with World Trade Organization law and that takes into account the decarbonisation of installations in the Union.
The Commission shall monitor the functioning of the CBAM with a view to evaluating the impacts and possible adjustments in its application.
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. 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;
- (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.
Where an unforeseeable, exceptional and unprovoked event has occurred that is outside the control of one or more third countries subject to the CBAM, and that event has destructive consequences on the economic and industrial infrastructure of such country or countries concerned, the Commission shall assess the situation and submit to the European Parliament and to the Council a report, accompanied, where appropriate, by a legislative proposal, to amend this Regulation by setting out the necessary provisional measures to address those exceptional circumstances.
From the end of the transitional period referred to in Article 32 of this Regulation, as part of the annual reporting pursuant to Article 41 of Regulation (EU) 2021/947 of the European Parliament and of the Council ([^E0006]), the Commission shall evaluate and report on how the financing under that Regulation has contributed to the decarbonisation of the manufacturing industry in LDCs.
CHAPTER IX COORDINATION WITH FREE ALLOCATION OF ALLOWANCES UNDER THE EU ETS
Article 31
Free allocation of allowances under the EU ETS and obligation to surrender CBAM certificates
The CBAM certificates to be surrendered in accordance with Article 22 of this Regulation shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to installations producing, within the Union, the goods listed in Annex I to this Regulation.
The Commission is empowered to adopt implementing acts laying down detailed rules for the calculation of the adjustment as referred to in paragraph 1 of this Article. Such detailed rules shall be elaborated by reference to the principles applied in the EU ETS for the free allocation of allowances to installations producing, within the Union, the goods listed in Annex I, taking account of the different benchmarks used in the EU ETS for free allocation with a view to combining those benchmarks into corresponding values for the goods concerned, and taking into account relevant input materials (precursors). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
CHAPTER X TRANSITIONAL PROVISIONS
Article 32
Scope of the transitional period
During the transitional period from 1 October 2023 until 31 December 2025, the obligations of the importer under this Regulation shall be limited to the reporting obligations set out in Articles 33, 34 and 35 of this Regulation. Where the importer is established in a Member State and appoints an indirect customs representative in accordance with Article 18 of Regulation (EU) No 952/2013, and where the indirect customs representative so agrees, the reporting obligations shall apply to such indirect customs representative. Where the importer is not established in a Member State, the reporting obligations shall apply to the indirect customs representative.
Article 33
Importation of goods
The customs authorities shall inform the importer or, in the situations covered by Article 32, the indirect customs representative of the reporting obligation referred to in Article 35 no later than at the moment of the release of goods for free circulation.
The customs authorities shall periodically and automatically, in particular by means of the surveillance mechanism established pursuant to Article 56(5) of Regulation (EU) No 952/2013 or by electronic means of data transmission, communicate to the Commission information on imported goods, including processed products resulting from the outward processing procedure. Such information shall include the EORI number of the customs declarant and of the importer, the eight-digit CN code, the quantity, the country of origin, the date of the customs declaration and the customs procedure.
The Commission shall communicate the information referred to in paragraph 2 to the competent authorities of the Member States where the customs declarant and, where applicable, the importer are established.
Article 34
Reporting obligation for certain customs procedures
Where processed products resulting from the inward processing procedure as referred to in Article 256 of Regulation (EU) No 952/2013 are imported, the reporting obligation referred to in Article 35 of this Regulation shall include the information on the goods that were placed under the inward processing procedure and resulted in the imported processed products, even if the processed products are not listed in Annex I to this Regulation. This paragraph shall also apply where the processed products resulting from the inward processing procedure are returned goods as referred to in Article 205 of Regulation (EU) No 952/2013.
The reporting obligation referred to in Article 35 of this Regulation shall not apply to the import of:
- (a) processed products resulting from the outward processing procedure as referred to in Article 259 of Regulation (EU) No 952/2013;
- (b) goods qualifying as returned goods in accordance with Article 203 of Regulation (EU) No 952/2013.
Article 35
Reporting obligation
Each importer or, in the situations covered by Article 32, the indirect customs representative, having imported goods during a given quarter of a calendar year shall, for that quarter, submit a report (‘CBAM report’) containing information on the goods imported during that quarter, to the Commission, no later than one month after the end of that quarter.
The CBAM report shall include the following information:
- (a) the total quantity of each type of goods, expressed in megawatt-hours for electricity and in tonnes for other goods, specified for each installation producing the goods in the country of origin;
- (b) the actual total embedded emissions, expressed in tonnes of CO2e emissions per megawatt-hour of electricity or for other goods in tonnes of CO2e emissions per tonne of each type of goods, calculated in accordance with the method set out in Annex IV;
- (c) the total indirect emissions calculated in accordance with the implementing act referred to in paragraph 7;
- (d) the carbon price due in a country of origin for the embedded emissions in the imported goods, taking into account any rebate or other form of compensation available.
The Commission shall periodically communicate to the relevant competent authorities a list of those importers or indirect customs representatives established in the Member State, including the corresponding justifications, which it has reasons to believe have failed to comply with the obligation to submit a CBAM report in accordance with paragraph 1.
Where the Commission considers that a CBAM report is incomplete or incorrect, it shall communicate to the competent authority of the Member State where the importer is established or, in the situations covered by Article 32, the indirect customs representative is established, the additional information it considers necessary to complete or correct that report. Such information shall be provided for indicative purposes and without prejudice to the definitive appreciation by that competent authority. That competent authority shall initiate the correction procedure and notify the importer or, in the situations covered by Article 32, the indirect customs representative of the additional information necessary to correct that report. Where appropriate, that importer or that indirect customs representative shall submit a corrected report to the competent authority concerned and to the Commission.
Where the competent authority of the Member State referred to in paragraph 4 of this Article initiates a correction procedure, including in consideration of information received in accordance with paragraph 4 of this Article, and determines that the importer or, where applicable in accordance with Article 32, the indirect customs representative has not taken the necessary steps to correct the CBAM report, or where the competent authority concerned determines, including in consideration of information received in accordance with paragraph 3 of this Article, that the importer or, where applicable in accordance with Article 32, the indirect customs representative has failed to comply with the obligation to submit a CBAM report in accordance with paragraph 1 of this Article, that competent authority shall impose an effective, proportionate and dissuasive penalty on the importer or, where applicable in accordance with Article 32, the indirect customs representative. To that end, the competent authority shall notify the importer or, where applicable in accordance with Article 32, the indirect customs representative and inform the Commission, of the following:
- (a) the conclusion, and reasons for that conclusion, that the importer or, where applicable in accordance with Article 32, the indirect customs representative has failed to comply with the obligation of submitting a report for a given quarter or to take the necessary steps to correct the report;
- (b) the amount of the penalty imposed on the importer or, where applicable in accordance with Article 32, the indirect customs representative;
- (c) the date from which the penalty is due;
- (d) the action that the importer or, where applicable in accordance with Article 32, the indirect customs representative is to take to pay the penalty; and
- (e) the right of the importer or, where applicable in accordance with Article 32, the indirect customs representative to appeal.
Where the competent authority, after receiving the information from the Commission under this Article, decides not to take any action, the competent authority shall inform the Commission accordingly.
The Commission is empowered to adopt implementing acts concerning:
- (a) the information to be reported, the means and format for that reporting, including detailed information per country of origin and type of goods to support the totals referred to in paragraph 2, points (a), (b) and (c), and examples of any relevant rebate or other form of compensation available as referred to in paragraph 2, point (d);
- (b) the indicative range of penalties to be imposed pursuant to paragraph 5 and the criteria to take into account for determining the actual amount, including the gravity and duration of the failure to report;
- (c) detailed rules on the conversion of the yearly average carbon price due referred to in paragraph 2, point (d), expressed in foreign currency into euro at the yearly average exchange rate;
- (d) detailed rules on the elements of the calculation methods set out in Annex IV, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail; and
- (e) the means and format for the reporting requirements for indirect emissions in imported goods; that format shall include the quantity of electricity used for the production of the goods listed in Annex I, as well as the country of origin, generation source and emission factors related to that electricity.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2) of this Regulation. They shall apply for goods imported during the transitional period referred to in Article 32 of this Regulation and shall build upon existing legislation for installations that fall within the scope of Directive 2003/87/EC.
CHAPTER XI FINAL PROVISIONS
Article 36
Entry into force
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
It shall apply from 1 October 2023. However:
- (a) Articles 5, 10, 14, 16 and 17 shall apply from 31 December 2024;
- (b) Article 2(2) and Articles 2a, 4, 6 to 9, 10a, 15, 19 and 21, Article 22(1) and 22(3) and Articles 23 to 27 and 31 shall apply from 1 January 2026;
- (c) Article 22(2) shall apply from 1 January 2027;
- (d) Article 20(1), (3), (4) and (5) shall apply from 1 February 2027.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
ANNEX I
List of goods and greenhouse gases
- 1.For the purpose of the identification of goods, this Regulation shall apply to goods falling under the Combined Nomenclature (‘CN’) codes set out in the following table. The CN codes shall be those under Regulation (EEC) No 2658/87.
- 2.For the purposes of this Regulation, the greenhouse gases relating to goods referred to in point 1, shall be those set out in the following table for the goods concerned.
Cement
| CN code | Greenhouse gas |
|---|---|
| ex 2507 00 80 – Other kaolinic clays except non-calcined kaolinic clays | Carbon dioxide |
| 2523 10 00 – Cement clinkers | Carbon dioxide |
| 2523 21 00 – White Portland cement, whether or not artificially coloured | Carbon dioxide |
| 2523 29 00 – Other Portland cement | Carbon dioxide |
| 2523 30 00 – Aluminous cement | Carbon dioxide |
| 2523 90 00 – Other hydraulic cements | Carbon dioxide |
Electricity
| CN code | Greenhouse gas |
|---|---|
| 2716 00 00 – Electrical energy | Carbon dioxide |
Fertilisers
| CN code | Greenhouse gas |
|---|---|
| 2808 00 00 – Nitric acid; sulphonitric acids | Carbon dioxide and nitrous oxide |
| 2814 – Ammonia, anhydrous or in aqueous solution | Carbon dioxide |
| 2834 21 00 – Nitrates of potassium | Carbon dioxide and nitrous oxide |
| 3102 – Mineral or chemical fertilisers, nitrogenous | Carbon dioxide and nitrous oxide |
| 3105 – Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg Except: 3105 60 00 – Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium | Carbon dioxide and nitrous oxide |
Iron and steel
| CN code | Greenhouse gas |
|---|---|
| 72 – Iron and steel Except: 7202 2 – Ferro-silicon 7202 30 00 – Ferro-silico-manganese 7202 50 00 – Ferro-silico-chromium 7202 70 00 – Ferro-molybdenum 7202 80 00 – Ferro-tungsten and ferro-silico-tungsten 7202 91 00 – Ferro-titanium and ferro-silico-titanium 7202 92 00 – Ferro-vanadium 7202 93 00 – Ferro-niobium 7202 99 – Other: 7202 99 10 – Ferro-phosphorus 7202 99 30 – Ferro-silico-magnesium 7202 99 80 – Other 7204 – Ferrous waste and scrap; remelting scrap ingots and steel | Carbon dioxide |
| 2601 12 00 – Agglomerated iron ores and concentrates, other than roasted iron pyrites | Carbon dioxide |
| 7301 – Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel | Carbon dioxide |
| 7302 – Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails | Carbon dioxide |
| 7303 00 – Tubes, pipes and hollow profiles, of cast iron | Carbon dioxide |
| 7304 – Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel | Carbon dioxide |
| 7305 – Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel | Carbon dioxide |
| 7306 – Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel | Carbon dioxide |
| 7307 – Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel | Carbon dioxide |
| 7308 – Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel | Carbon dioxide |
| 7309 00 – Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide |
| 7310 – Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide |
| 7311 00 – Containers for compressed or liquefied gas, of iron or steel | Carbon dioxide |
| 7318 – Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel | Carbon dioxide |
| 7326 – Other articles of iron or steel | Carbon dioxide |
Aluminium
| CN code | Greenhouse gas |
|---|---|
| 7601 – Unwrought aluminium | Carbon dioxide and perfluorocarbons |
| 7603 – Aluminium powders and flakes | Carbon dioxide and perfluorocarbons |
| 7604 – Aluminium bars, rods and profiles | Carbon dioxide and perfluorocarbons |
| 7605 – Aluminium wire | Carbon dioxide and perfluorocarbons |
| 7606 – Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm | Carbon dioxide and perfluorocarbons |
| 7607 – Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm | Carbon dioxide and perfluorocarbons |
| 7608 – Aluminium tubes and pipes | Carbon dioxide and perfluorocarbons |
| 7609 00 00 – Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) | Carbon dioxide and perfluorocarbons |
| 7610 – Aluminium structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures | Carbon dioxide and perfluorocarbons |
| 7611 00 00 – Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide and perfluorocarbons |
| 7612 – Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide and perfluorocarbons |
| 7613 00 00 – Aluminium containers for compressed or liquefied gas | Carbon dioxide and perfluorocarbons |
| 7614 – Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated | Carbon dioxide and perfluorocarbons |
| 7616 – Other articles of aluminium | Carbon dioxide and perfluorocarbons |
Chemicals
| CN code | Greenhouse gas |
|---|---|
| 2804 10 00 – Hydrogen | Carbon dioxide |
ANNEX II
List of goods for which only direct emissions are to be taken into account, pursuant to Article 7(1)
Iron and steel
| CN code | Greenhouse gas |
|---|---|
| 72 – Iron and steel Except: 7202 2 – Ferro-silicon 7202 30 00 – Ferro-silico-manganese 7202 50 00 – Ferro-silico-chromium 7202 70 00 – Ferro-molybdenum 7202 80 00 – Ferro-tungsten and ferro-silico-tungsten 7202 91 00 – Ferro-titanium and ferro-silico-titanium 7202 92 00 – Ferro-vanadium 7202 93 00 – Ferro-niobium 7202 99 – Other: 7202 99 10 – Ferro-phosphorus 7202 99 30 – Ferro-silico-magnesium 7202 99 80 – Other 7204 – Ferrous waste and scrap; remelting scrap ingots and steel | Carbon dioxide |
| 7301 – Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel | Carbon dioxide |
| 7302 – Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails | Carbon dioxide |
| 7303 00 – Tubes, pipes and hollow profiles, of cast iron | Carbon dioxide |
| 7304 – Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel | Carbon dioxide |
| 7305 – Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel | Carbon dioxide |
| 7306 – Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel | Carbon dioxide |
| 7307 – Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel | Carbon dioxide |
| 7308 – Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel | Carbon dioxide |
| 7309 00 – Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide |
| 7310 – Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide |
| 7311 00 – Containers for compressed or liquefied gas, of iron or steel | Carbon dioxide |
| 7318 – Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel | Carbon dioxide |
| 7326 – Other articles of iron or steel | Carbon dioxide |
Aluminium
| CN code | Greenhouse gas |
|---|---|
| 7601 – Unwrought aluminium | Carbon dioxide and perfluorocarbons |
| 7603 – Aluminium powders and flakes | Carbon dioxide and perfluorocarbons |
| 7604 – Aluminium bars, rods and profiles | Carbon dioxide and perfluorocarbons |
| 7605 – Aluminium wire | Carbon dioxide and perfluorocarbons |
| 7606 – Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm | Carbon dioxide and perfluorocarbons |
| 7607 – Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm | Carbon dioxide and perfluorocarbons |
| 7608 – Aluminium tubes and pipes | Carbon dioxide and perfluorocarbons |
| 7609 00 00 – Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) | Carbon dioxide and perfluorocarbons |
| 7610 – Aluminium structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures | Carbon dioxide and perfluorocarbons |
| 7611 00 00 – Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide and perfluorocarbons |
| 7612 – Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment | Carbon dioxide and perfluorocarbons |
| 7613 00 00 – Aluminium containers for compressed or liquefied gas | Carbon dioxide and perfluorocarbons |
| 7614 – Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated | Carbon dioxide and perfluorocarbons |
| 7616 – Other articles of aluminium | Carbon dioxide and perfluorocarbons |
Chemicals
| CN code | Greenhouse gas |
|---|---|
| 2804 10 00 – Hydrogen | Carbon dioxide |
Electricity
| CN code | Greenhouse gas |
|---|---|
| 2716 00 00 – Electrical energy | Carbon dioxide |
ANNEX III
Third countries and territories outside the scope of this Regulation for the purpose of Article 2
1. THIRD COUNTRIES AND TERRITORIES OUTSIDE THE SCOPE OF THIS REGULATION
This Regulation shall not apply to goods originating in the following countries:
- — Iceland
- — Liechtenstein
- — Norway
- — Switzerland
This Regulation shall not apply to goods originating in the following territories:
- — Büsingen
- — Heligoland
- — Livigno
- — Ceuta
- — Melilla
2. THIRD COUNTRIES AND TERRITORIES OUTSIDE THE SCOPE OF THIS REGULATION WITH REGARD TO THE IMPORTATION OF ELECTRICITY INTO THE CUSTOMS TERRITORY OF THE UNION
[Third countries or territories to be added or removed by the Commission pursuant to Article 2(11).]
ANNEX IV
Methods for calculating embedded emissions for the purpose of Article 7
1. DEFINITIONS
For the purposes of this Annex and of Annexes V and VI, the following definitions apply:
- (a) ‘simple goods’ means goods produced in a production process requiring exclusively input materials (precursors) and fuels having zero embedded emissions;
- (b) ‘complex goods’ means goods other than simple goods;
- (c) ‘specific embedded emissions’ means the embedded emissions of one tonne of goods, expressed as tonnes of CO2e emissions per tonne of goods;
- (d) ‘CO2 emission factor’, means the weighted average of the CO2 intensity of electricity produced from fossil fuels within a geographic area; the CO2 emission factor is the result of the division of the CO2 emission data of the electricity sector by the gross electricity generation based on fossil fuels in the relevant geographic area; it is expressed in tonnes of CO2 per megawatt-hour;
- (e) ‘emission factor for electricity’ means the default value, expressed in CO2e, representing the emission intensity of electricity consumed in production of goods;
- (f) ‘power purchase agreement’ means a contract under which a person agrees to purchase electricity directly from an electricity producer;
- (g) ‘transmission system operator’ means an operator as defined in Article 2, point (35), of Directive (EU) 2019/944 of the European Parliament and of the Council ([^E0007]).
2. DETERMINATION OF ACTUAL SPECIFIC EMBEDDED EMISSIONS FOR SIMPLE GOODS
For determining the specific actual embedded emissions of simple goods produced in a given installation, direct and, where applicable, indirect emissions shall be accounted for. For that purpose, the following equation is to be applied:
Image omitted; see official source
Where:
- SEEg are the specific embedded emissions of goods g, in terms of CO2e per tonne;
- AttrEmg are the attributed emissions of goods g, and
- ALg is the activity level of the goods, being the quantity of the goods produced in the reporting period in that installation.
‘Attributed emissions’ mean the part of the installation’s emissions during the reporting period that are caused by the production process resulting in goods g when applying the system boundaries of the production process defined by the implementing acts adopted pursuant to Article 7(7). The attributed emissions shall be calculated using the following equation:
Image omitted; see official source
Where:
- DirEm are the direct emissions, resulting from the production process, expressed in tonnes of CO2e, within the system boundaries referred to in the implementing act adopted pursuant to Article 7(7), and
- IndirEm are the indirect emissions resulting from the production of electricity consumed in the production processes of goods, expressed in tonnes of CO2e, within the system boundaries referred to in the implementing act adopted pursuant to Article 7(7).
3. DETERMINATION OF ACTUAL EMBEDDED EMISSIONS FOR COMPLEX GOODS
For determining the specific actual embedded emissions of complex goods produced in a given installation, the following equation is to be applied:
Image omitted; see official source
Where:
- AttrEmg are the attributed emissions of goods g,
- ALg is the activity level of the goods, being the quantity of goods produced in the reporting period in that installation, and
- EEInpMat are the embedded emissions of the input materials (precursors) consumed in the production process. Only input materials (precursors) listed in Annex I and originating in third countries and territories that are not exempted pursuant to point 1 of Annex III are to be considered. The relevant EEInpMat are calculated as follows:
Image omitted; see official source
Where:
- Mi is the mass of input material (precursor) i used in the production process, and
- SEEi are the specific embedded emissions for the input material (precursor) i. For SEEi the operator of the installation shall use the value of emissions resulting from the installation where the input material (precursor) was produced, provided that that installation’s data can be adequately measured.
4. DETERMINATION OF DEFAULT VALUES REFERRED TO IN ARTICLE 7(2) AND (3)
For the purpose of determining default values, only actual values shall be used for the determination of embedded emissions. In the absence of actual data, literature values may be used. Default values shall be determined based on the best available data. Best available data shall be based on reliable and publicly available information. Default values shall be revised periodically through the implementing acts adopted pursuant to Article 7(7) based on the most up-to-date and reliable information, including on the basis of information provided by a third country or group of third countries.
4.1. Default values referred to in Article 7(2)
Default values shall be set at the average emission intensity of each exporting country and for each of the goods listed in Annex I other than electricity, increased by a proportionately designed mark-up. This mark-up shall be determined in the implementing acts adopted pursuant to Article 7(7) and shall be set at an appropriate level to ensure the environmental integrity of the CBAM, building on the most up-to-date and reliable information, including on the basis of information gathered during the transitional period. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 exporting countries with the highest emission intensities for which reliable data can be applied for that type of goods.
4.2. Default values for imported electricity referred to in Article 7(3)
Default values for imported electricity shall be determined for a third country, group of third countries or region within a third country based on either specific default values, in accordance with point 4.2.1, or, if those values are not available, on alternative default values, in accordance with point 4.2.2.
Where the electricity is produced in a third country, group of third countries or region within a third country, and transits through third countries, groups of third countries, regions within a third country or Member States with the purpose of being imported into the Union, the default values to be used are those from the third country, group of third countries or region within a third country where the electricity was produced.
4.2.1. Specific default values for a third country, group of third countries or region within a third country
Specific default values shall be set at the CO2 emission factor in the third country, group of third countries or region within a third country, based on the best data available to the Commission.
4.2.2. Alternative default values
Where a specific default value is not available for a third country, a group of third countries, or a region within a third country, the alternative default value for electricity shall be set at the CO2 emission factor in the Union.
Where it can be demonstrated, on the basis of reliable data, that the CO2 emission factor in a third country, a group of third countries or a region within a third country is lower than the specific default value determined by the Commission or lower than the CO2 emission factor in the Union, an alternative default value based on that CO2 emission factor may be used for that third country, group of third countries or region within a third country.
4.3 Default values for embedded indirect emissions
Default values for the indirect emissions embedded in a good produced in a third country shall be determined on a default value calculated on the average, of either the emission factor of the Union electricity grid, the emission factor of the country of origin electricity grid or the CO2 emission factor of price-setting sources in the country of origin, of the electricity used for the production of that good.
Where a third country, or a group of third countries, demonstrates to the Commission, on the basis of reliable data, that the average electricity mix emission factor or CO2 emission factor of price-setting sources in the third country or group of third countries is lower than the default value for indirect emissions, an alternative default value based on that average CO2 emission factor shall be established for this country or group of countries.
The Commission shall adopt, no later than 30 June 2025, an implementing act pursuant to Article 7(7) to further specify which of the calculation methods determined in accordance with the first subparagraph shall apply to the calculation of default values. For that purpose, the Commission shall base itself on the most up-to-date and reliable data, including on data gathered during the transitional period, as regards the quantity of electricity used for the production of the goods listed in Annex I, as well as the country of origin, generation source and emission factors related to that electricity. The specific calculation method shall be determined on the basis of the most appropriate way to achieve both of the following criteria:
- — the prevention of carbon leakage;
- — ensuring the environmental integrity of the CBAM.
5. CONDITIONS FOR APPLYING ACTUAL EMBEDDED EMISSIONS IN IMPORTED ELECTRICITY
An authorised CBAM declarant may apply actual embedded emissions instead of default values for the calculation referred to in Article 7(3) if the following cumulative criteria are met:
- (a) the amount of electricity for which the use of actual embedded emissions is claimed is covered by a power purchase agreement between the authorised CBAM declarant and a producer of electricity located in a third country;
- (b) the installation producing electricity is either directly connected to the Union transmission system or it can be demonstrated that at the time of export there was no physical network congestion at any point in the network between the installation and the Union transmission system;
- (c) the installation producing electricity does not emit more than 550 grammes of CO2 of fossil fuel origin per kilowatt-hour of electricity;
- (d) the amount of electricity for which the use of actual embedded emissions is claimed has been firmly nominated to the allocated interconnection capacity by all responsible transmission system operators in the country of origin, the country of destination and, if relevant, each country of transit, and the nominated capacity and the production of electricity by the installation refer to the same period of time, which shall not be longer than one hour;
- (e) the fulfilment of the above criteria is certified by an accredited verifier, who shall receive at least monthly interim reports demonstrating how those criteria are fulfilled.
The accumulated amount of electricity under the power purchase agreement and its corresponding actual embedded emissions shall be excluded from the calculation of the country emission factor or the CO2 emission factor used for the purpose of the calculation of indirect electricity embedded emissions in goods in accordance with point 4.3, respectively.
6. CONDITIONS TO APPLYING ACTUAL EMBEDDED EMISSIONS FOR INDIRECT EMISSIONS
An authorised CBAM declarant may apply actual embedded emissions instead of default values for the calculation referred to in Article 7(4) if it can demonstrate a direct technical link between the installation in which the imported good is produced and the electricity generation source or if the operator of that installation has concluded a power purchase agreement with a producer of electricity located in a third country for an amount of electricity that is equivalent to the amount for which the use of a specific value is claimed.
7. ADAPTATION OF DEFAULT VALUES REFERRED TO IN ARTICLE 7(2) BASED ON REGION-SPECIFIC FEATURES
Default values can be adapted to particular areas and regions within third countries where specific characteristics prevail in terms of objective emission factors. When data adapted to those specific local characteristics are available and more targeted default values can be determined, the latter may be used.
Where declarants for goods produced in a third country, a group of third countries or a region within a third country can demonstrate, on the basis of reliable data, that alternative region-specific adaptations of default values are lower than the default values determined by the Commission, such region-specific adaptations can be used.
ANNEX V
Bookkeeping requirements for information used for the calculation of embedded emissions for the purpose of Article 7(5)
1. MINIMUM DATA TO BE KEPT BY AN AUTHORISED CBAM DECLARANT FOR IMPORTED GOODS:
-
- Data identifying the authorised CBAM declarant:
- (a) name;
- (b) CBAM account number.
-
- Data on imported goods:
- (a) type and quantity of each type of goods;
- (b) country of origin;
- (c) actual emissions or default values.
2. MINIMUM DATA TO BE KEPT BY AN AUTHORISED CBAM DECLARANT FOR EMBEDDED EMISSIONS IN IMPORTED GOODS THAT ARE DETERMINED BASED ON ACTUAL EMISSIONS
For each type of imported goods where embedded emissions are determined based on actual emissions, the following additional data shall be kept:
- (a) identification of the installation where the goods were produced;
- (b) contact information of the operator of the installation where the goods were produced;
- (c) the verification reports as set out in Annex VI;
- (d) the specific embedded emissions of the goods;
- (e) information and the method used to calculate the embedded emissions.
ANNEX VI
Verification principles and content of verification reports for the purpose of Article 8
1. PRINCIPLES OF VERIFICATION
The following principles shall apply:
- (a) verifiers shall carry out verifications with an attitude of professional scepticism;
- (b) the total embedded emissions to be declared in the CBAM declaration shall be considered as verified only if the verifier finds with reasonable assurance that the verification report is free of material misstatements and of material non-conformities regarding the calculation of embedded emissions in accordance with the rules of Annex IV;
- (c) installation visits by the verifier shall be mandatory except where specific criteria for waiving the installation visit are met;
- (d) for deciding whether misstatements or non-conformities are material, the verifier shall use thresholds given by the implementing acts adopted in accordance with Article 8(3). For parameters for which no such thresholds are determined, the verifier shall use expert judgement as to whether misstatements or non-conformities, individually or when aggregated with other misstatements or non-conformities, justified by their size and nature, are to be considered material.
2. CONTENT OF A VERIFICATION REPORT
The verifier shall prepare a verification report establishing the embedded emissions of the goods and specifying all issues relevant to the work carried out and including, at least, the following information:
- (a) identification of the installations where the goods were produced;
- (b) contact information of the operator of the installations where the goods were produced;
- (c) the applicable reporting period;
- (d) name and contact information of the verifier;
- (e) accreditation number of the verifier, and name of the accreditation body;
- (f) the date of the installations visits, if applicable, or the reasons for not carrying out an installation visit;
- (g) quantities of each type of declared goods produced in the reporting period;
- (h) quantification of direct emissions of the installation during the reporting period;
- (i) a description on how the installation’s emissions are attributed to different types of goods;
- (j) quantitative information on the goods, emissions and energy flows not associated with those goods;
- (k) in case of complex goods:
- (i) quantities of each input material (precursor) used;
- (ii) the specific embedded emissions associated with each of the input materials (precursors) used;
- (iii) the identification of the installations where the input material (precursor) has been produced and the actual emissions from the production of that material;
- (l) the verifier’s statement confirming that he or she finds with reasonable assurance that the report is free of material misstatements and of material non-conformities regarding the calculation rules of Annex IV;
- (m) information on material misstatements found and corrected;
- (n) information of material non-conformities with calculation rules set out in Annex IV found and corrected.
ANNEX VII
The single mass-based threshold
- 1.The single mass-based threshold referred to in Article 2a shall be set at 50 tonnes of net mass.
- 2.For the purpose of Article 2a(3), the following methodology shall apply:
- Image omitted; see official source chosen such that
Image omitted; see official source
- Where:
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