On 30 October 2026, the European Commission published detailed technical guidance for the reporting of embedded emissions under the Carbon Border Adjustment Mechanism (CBAM) during its transitional phase (1 October 2023 – 31 December 2025). The guidance, issued as Commission Implementing Regulation (EU) 2026/XX, specifies calculation methodologies for direct and indirect emissions for CBAM goods (cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen). It clarifies the use of default values, actual measurement requirements, and verification obligations for importers and non-EU producers. Compliance is mandatory for the quarterly CBAM reports due by 31 January 2027 for the final transitional quarter.
Key Takeaways
- Emissions Calculation Hierarchy: The guidance establishes a strict hierarchy: actual verified data > default values published by the Commission > other reliable data sources. Importers must demonstrate due diligence in sourcing actual data.
- Indirect Emissions Inclusion: Indirect emissions from electricity consumption are now explicitly required for all CBAM goods, using the EU grid average emission factor unless a direct power purchase agreement (PPA) with renewable source is proven.
- Verification and Penalties: Reports must be verified by an accredited verifier before submission. Non-compliance or inaccurate reporting may trigger penalties under Regulation (EU) 2023/956, up to €50 per tonne of unreported emissions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement