The European Commission has confirmed that the final benchmarks of the Carbon Boundary Regulation Mechanism (CBAM) will become available only after the revision of the benchmarks of the EU Emissions Trading System (ETS) in 2026.
The updated information was presented at the CBAM event organized by the Japanese Business Council in Europe and presented by Hendrik Schuldt, CEO of the German consulting company carboneer.
The default CBAM benchmark will reflect the "typical manufacturing process" for each CBAM product category. Verified supplier data can be used to demonstrate alternative manufacturing processes, which can lead to different applicable criteria representing the free discounts that the manufacturer would receive if these processes were carried out in the EU.
Updated the built-in emission rules, default values, and price list.
The Commission stated that the rules for calculating CBAM emissions will undergo minor changes compared to the transition phase.
The default values will be published in the fourth quarter of 2025 as an annex to the current emissions calculation regulation. These default values will be set for all trading partners. No details were provided on possible margins, except for the requirement that they be high enough to avoid benefits for high-emission producers.
Meanwhile, in 2026, the Commission will collect data on the actual carbon prices paid in exporting countries, including discounts. Standard carbon prices will be published in the CBAM register in 2027. The requirements for documentation confirming actual carbon prices will be developed jointly with the authorities of third countries.
The verification rules will fully comply with EU regulations
According to carboneer's analysis of the leaked draft regulations, CBAM verification procedures will copy ETS practices to establish parity between EU and non-EU manufacturers.:
- Non-EU producers are required to monitor and report emissions in accordance with standardized CBAM methodologies.
- Verifiers carry out risk assessments, visit enterprises on site or in real time, and conduct a detailed analysis of the data provided.
- If the inspectors identify significant misstatements or inconsistencies, the verification fails and the data cannot be used in the importer's CBAM declaration. Non-material issues should be addressed and fixed.
