Consultations on the carbon dioxide Emissions Control Mechanism (CBAM) have concluded, with the final draft expected in the fourth quarter of 2025; lack of clarity on benchmarks and default values worries businesses, Fastmarkets reported on September 26.
Three decisions of the European Commission related consultations, which began on August 28, addressed key issues, including default values, benchmarks, recognition of carbon pricing in third countries, and the mechanism for adjusting allocation under the EU's Free Emissions Trading System (ETS).
The consultations ended at midnight Brussels time on September 25.
The Commission is expected to submit the final draft of the CBAM rules, which will be put into effect in the fourth quarter of 2025.
Industry sources noted widespread concerns about the balance between administrative workload and financial risks. "Early preparation for data systems, verification processes, and supply chain coordination will be crucial to manage compliance risks and increase competitiveness," said one distributor.
The first consultation was devoted to the methodology for calculating embedded emissions. Businesses will need to decide whether to provide actual data at the enterprise level or rely on default values. While evidence can potentially reduce costs if carbon emissions are properly managed, it also requires reliable monitoring and verification systems. The key issues were accounting for indirect emissions, especially electricity, and the potential use of electricity purchase agreements and energy performance certificates.
The second consultation concerned the adjustment of CBAM certificate obligations in accordance with the free allocation of EU quotas for ETS. The main discussion focused on how generous such adjustments should be, how quickly they should be reversed, and whether they could undermine rising carbon prices. Industry stakeholders tend to advocate for a smoother and safer transition, while non-governmental organizations have highlighted the risk of weakening climate ambitions.
The third consultation concerned the recognition of carbon prices that are already being paid in third countries. Fastmarkets believes that importers can claim a reduction in CBAM obligations if they can prove the equivalence of payments abroad. However, the verification requirements, currency exchange rules and the procedure for granting discounts remain uncertain. The business objective is to
