The leaked CBAM benchmarks bring some clarity and even more uncertainty.
This week, a leaked document presented the long-awaited draft CBAM baseline values from the European Commission, which gives EU importers the key figure they need to calculate the cost of steel imports from January 1, 2026. They are still subject to review before finalizing and have been questioned by some industry sources, Kallanish notes.
The benchmarks are presented in two columns: A for use when applying actual emission intensity data provided and verified by a non-EU steel company, and B for use with default values when actual data is not available.
In case A, one base value is specified for each HS code. However, the document provides a requirement for choosing a production route.
If more than 50% of the mass of crude steel produced or used is scrap, then the production method should be selected - scrap /EDP. If more than 50% of the weight of the crude steel produced or used comes from DRI, then the DRI/EAF production method should be selected. If more than 50% of the mass of crude steel produced or used comes from a blast furnace or during reduction smelting, then the production method should be selected according to the BF/BOF ratio.
.If none of the three listed methods accounts for more than 50% of the finished steel, then the production method is selected based on the component that provides the largest mass of steel, according to the published document.
Column B contains several control values for each HS code, divided by production process – BF — BOF, DRI/EAF and scrap/EAF.
The basic formula for calculating the cost of CBAM per ton of imported steel is as follows:
Actual or default emissions – (corresponding baseline emissions indicator x CBAM coefficient) x EU ETS price – carbon tax paid.
If we take the Indian hot-rolled roll as an example, then using standard emission data and therefore a standard emission indicator of 1.53 tons of CO2 per ton of steel, and the default country-specific emission value of 4.27 tons of CO/ton, and assuming an ETS price of 80 euros per ton, the cost of CBAM is up to 222.26 euros per tonne in 2026. This is with a CBAM coefficient, or a phased implementation coefficient, of 97.5%, which decreases with each subsequent year until it reaches zero in 2034, increasing the cost of imports.
However, for many, the information leak raises more questions than it answers. Although the document sets out detailed rules for the actual data that determine how the production route should be chosen.,