CBAM: Clearer rules as the first financial deadlines approach

With the publication of new guidelines, the European Commission is clarifying the methods for calculating and verifying emissions and updating default values. While the first purchases of CBAM certificates will begin in February 2027, an extension of the mechanism to additional downstream products is already being considered for 2028. Meanwhile, draft Chinese regulations on the protection of trade secrets raise the possibility of restrictions that could potentially block the transfer of carbon emissions data needed to calculate actual emissions. Against a backdrop of stricter customs enforcement in France, uncertainty over access to data and approaching financial deadlines, importers must anticipate their compliance obligations and associated costs more than ever.

1. Ten new guidelines to support the implementation of the CBAM

The series comprises four general guidance documents addressing, in particular, the fundamental principles of the mechanism, the methods for calculating embedded emissions and the adjustment for free allocation under the EU Emissions Trading System (EU ETS). These are complemented by six sector-specific guides covering cement, hydrogen, fertilisers, iron and steel, aluminium and electricity.

Through practical examples, these documents help operators understand the requirements applicable since 1 January 2026 and prepare their first annual CBAM declarations.

Although not legally binding, the guidance documents provide valuable clarification on the application of the regulatory framework, particularly Commission Implementing Regulations (EU) 2025/2547 and 2025/2620.

2. Calculation methods for embedded emissions: further clarification

The calculation methodology is now subject to more standardised rules, taking into account emissions generated by production processes and, depending on the goods concerned, indirect emissions arising from electricity consumption and emissions embedded in input materials known as “precursors”.

Several developments deserve particular attention:

  • Reporting period: The reference period is now aligned with the calendar year of production, subject to specific rules for determining the relevant reporting period for imported goods.
  • Units of measurement: The applicable functional units have been further specified, notably by reference to clinker content for cement and nitrogen content for certain fertilisers.
  • Treatment of precursors: New rules govern the attribution and calculation of emissions embedded in precursors, including the use of weighted averages where multiple suppliers or production periods are involved.
  • Production processes: The boundaries of production processes and the conditions governing the calculation and attribution of direct and indirect emissions are now more clearly defined.

Record-keeping requirements have also been strengthened, with the mandatory retention period for emissions monitoring data extended from four to six years.

In practice, these clarifications highlight the need for greater traceability throughout industrial production processes and more reliable emissions data from non-EU suppliers.

3. Calculating CBAM certificate obligations: actual emissions, default values and free allocation

Authorised CBAM declarants may determine the embedded emissions of imported goods using either verified actual emissions data or default values established by the European Commission.

The use of actual emissions data requires detailed information on production installations, together with a verification report issued by an accredited verifier. Where such data are unavailable, importers may rely on the applicable default values, which include mark-ups designed to account for uncertainties in emissions calculations.

The number of CBAM certificates to be surrendered is therefore determined on the basis of the embedded emissions of imported goods, taking into account the adjustment for free allocation and, where applicable, the carbon price effectively paid in the country of origin, in accordance with the applicable regulatory requirements.

The choice of calculation method is therefore a significant financial consideration for importers, as the emissions values used may directly affect their CBAM liability.

The sale of CBAM certificates will begin on 1 February 2027, through a common central platform, in accordance with Article 20 of Regulation (EU) 2023/956, as amended by Regulation (EU) 2025/2083. Certificates purchased in 2027 to cover imports made in 2026 will be priced according to the quarterly CBAM certificate price applicable to the period in which the goods were imported.

The first annual CBAM declaration, covering imports made in 2026, must be submitted, and the corresponding CBAM certificates surrendered, by 30 September 2027.

4. Revised default values with retroactive effect

For goods in the cement, iron and steel, aluminium and hydrogen sectors, the default values used to calculate the number of CBAM certificates to be surrendered are subject to a mark-up of 10% in 2026, 20% in 2027 and 30% from 2028 onwards. For fertilisers, a flat mark-up of 1% applies throughout the period.

Importers should therefore reassess their estimated CBAM costs where these were calculated using the previously published default values.

5. Further clarification on emissions verification

These documents clarify the accreditation requirements applicable to verifiers, the procedures for verifying emissions data and the arrangements for submitting verification reports.

Since 1 September 2026, accredited verifiers have been able to apply for access to the CBAM Registry. From January 2027, they will be able to issue verification reports through the Registry.

For importers intending to rely on actual emissions data, anticipating verification requirements and ensuring close cooperation with non-EU suppliers are therefore essential steps towards CBAM compliance.

6. French customs authorities take a tougher stance on CBAM declaration errors

Importers must, in particular, use their SIREN-based EORI number (EORI SIREN), including when claiming an exemption, ensure that the information provided in their customs declarations matches the details associated with their CBAM account, and use the appropriate customs codes reflecting their specific circumstances.

The DGDDI specifically highlights the requirement for authorised CBAM declarants to use code Y128, the use of code Y137 when claiming the exemption based on the annual 50-tonne threshold, and the exceptional nature of code Y238, which remains available only to a limited number of operators specifically identified by the European Commission. Code Y422 must also be used when placing goods covered by the CBAM under the inward processing procedure.

7. Financial obligations becoming a reality

CBAM certificate prices are calculated and published quarterly in 2026, before switching to weekly pricing from 2027 onwards.

Importers will be required to submit their first annual CBAM declaration, covering imports made in 2026, and surrender the corresponding CBAM certificates by 30 September 2027.

Meanwhile, discussions at EU level are continuing on the proposed extension of the CBAM to certain downstream products containing steel or aluminium from 2028 onwards.

These developments confirm that CBAM compliance is no longer limited to reporting requirements. Importers must now ensure the reliability of their emissions data, review their contractual arrangements with suppliers and anticipate the carbon costs associated with their imports.

8. Downstream products: proposed extension of CBAM from 2028

Interinstitutional negotiations, which began in autumn 2026, are also addressing additional anti-circumvention measures, the treatment of metal scrap and the rules governing default values.

9. China: a potential obstacle to the transfer of carbon emissions data

On 26 October 2026, China’s Ministry of Commerce (MOFCOM) launched a public consultation, open until 24 November 2026, on draft special provisions for the protection of Chinese trade secrets. Article 2 targets foreign entities involved in infringements of Chinese trade secrets where such conduct harms, or poses an actual threat to, China’s sovereignty, security or development interests. Under Article 5, MOFCOM could, in particular, restrict or prohibit certain international trade activities and services involving the entities concerned.

For CBAM purposes, this proposal raises the possibility of a blockage in the flow of carbon emissions data. The calculation and verification of actual embedded emissions require access to detailed information on industrial processes, energy consumption and raw materials at installations outside the EU. Some of that information may be commercially sensitive. If its disclosure to foreign importers or verifiers were challenged on trade secret grounds, a broad application of the future rules could make the transfer of such data difficult, or even practically impossible, for certain Chinese supply chains.

CBAM: Clearer rules as the first financial deadlines approach

With the publication of new guidelines, the European Commission is clarifying the methods for calculating and verifying emissions and updating default values. While the first purchases of CBAM certificates will begin in February 2027, an extension of the mechanism to additional downstream products is already being considered for 2028. Meanwhile, draft Chinese regulations on the protection of trade secrets raise the possibility of restrictions that could potentially block the transfer of carbon emissions data needed to calculate actual emissions. Against a backdrop of stricter customs enforcement in France, uncertainty over access to data and approaching financial deadlines, importers must anticipate their compliance obligations and associated costs more than ever.

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