emendrix

Annex IV

Carbon Border Adjustment Mechanism · 32023R0956 · every event for this act · on EUR-Lex

Methods for calculating embedded emissions for the purpose of Article 7

1 change recorded across 1 event, newest first.

in force 2025-10-20 MODIFIED+216 −902

Amended by Regulation (EU) 2025/2083 32025R2083

applies from: unchanged

Sources disagree — the text comparison and the EU's own amendment metadata found this change; the amending act's instructions do not mention it. All are shown; none is overruled.

Section 3 narrows which input materials count toward embedded emissions of complex goods, now limiting them to precursors listed in Annex I and originating in third countries and territories not exempted under Annex III point 1, rather than those listed as relevant under the implementing act system boundaries.

Section 4 removes the sentence about the Commission publishing guidance on correcting for waste gases or greenhouse gases used as process input before collecting default value data, and section 4.1 drops the reference to default values applying when actual emissions cannot be adequately determined by the authorised CBAM declarant, instead stating default values shall be set at the average emission intensity outright, while also replacing the worst-performing-installations fallback mechanism with a rule based on the ten exporting countries with the highest emission intensities for which reliable data can be applied.

Section 7 changes the phrase describing declarants for goods from goods originating in a third country to goods produced in a third country.

Cited: Annex IV, v1 · Annex IV, v2

text before / after

32023R095602023R0956-20251020

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 … 389 unchanged words … 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: SEEgAttrEmgEEInpMatALg Where: AttrEmg are the attributed emissions of goods g; 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 as relevant to the system boundaries of the production process as specified in the implementing act adopted Annex I and originating in third countries and territories that are not exempted pursuant to Article 7(7) point 1 of Annex III are to be considered. The relevant EEInpMat are calculated as follows: EEImpMatni1Mi·SEEi 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. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. 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) When actual emissions cannot be adequately determined by the authorised CBAM declarant, default values shall be used. Those 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 X % worst performing EU ETS installations 10 exporting countries with the highest emission intensities for which reliable data can be applied for that type of goods. The value of X 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. 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 … 938 unchanged words … 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 originating 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.