EU Committee approves new carbon emission values for CBAM

The European Union has reached an important milestone in defining new emission factors, which are crucial for the implementation of the Carbon Boundary Adjustment Mechanism (CBAM).

The committee, consisting of representatives of the Member States, approved a technical document containing default values for a specific product and preliminary carbon intensity benchmarks after a formal vote. With the adoption of this decision, the case moves to the final stage — the official approval by the European Commission, scheduled for December 16.

The updated technical documents have revised the coefficients of direct and indirect emissions for a wide range of products, from cast iron and steel to cement, fertilizers and aluminum. The tables for Albania and Algeria that you shared show the total emissions values for each product, as well as the 10%, 20%, and 30% mark-up increases that will apply in 2026, 2027, and 2028, respectively.

For example, the total carbon content of grey clinker produced in Albania is 0.87 TCO/t, and by 2028 it will increase to 1.131 TCO/t. For grey Portland cement from Algeria, the initial value is 1.30 t/t, gradually increasing to 1.69 t/t.

The "Iron and Steel" section offers a wide range of products, including cast iron, agglomerates, ferroalloys such as ferrochrome and ferrosilicon, iron ore, semi-finished products (7207), hot-rolled and cold-rolled flat products, stainless steel and alloy steels. For example, the default direct emission coefficient for semi-finished products according to CN 7207 was set at 3.00 t CO/t.

The benchmarks are aligned with the EU ETS

According to the widespread information about the process, the baseline values to be used under the CBAM are being developed in accordance with the EU Emissions Trading System (ETS). The Commission and Member States are currently finalizing the development of ETS assessment methodologies, and it is expected that the CBAM criteria will be based on these standards. This alignment aims to ensure that accounting for carbon emissions in imported goods is comparable to EU production standards.

The role of default values and step-by-step transition

The default CBAM values represent the estimated carbon emissions assigned to certain imported goods based on their country of origin. These values will serve as mandatory benchmarks, especially for companies that cannot provide verified emissions data at the installation level.

According to the new system, default values will be applied with annual allowances of 10% in 2026, 20% in 2027 and 30%