EU CBAM benchmarks and embedded emissions: Commission seeks industry input

EU, CBAM

The European Commission opened a call for evidence on EU CBAM benchmarks and embedded emissions. The consultation will shape how importers account for foreign carbon prices and calculate embedded emissions. The move clarifies discounts, benchmarks, and default values before CBAM’s definitive phase.

How discounts and benchmarks will work

The first act will define how importers deduct foreign carbon prices. It will convert paid carbon taxes into EU CBAM benchmarks and embedded emissions certificates. It will also specify documentary evidence and conversion rules.

The second act will quantify free EU ETS allowances embedded in products. It will apply the value as a CBAM discount for covered goods. It will align benchmarks for installations with product-level categories. It will keep the system simple and accurate, the Commission said.

Timeline, scope, and data methodologies

The third act will govern calculations from 1 January 2026. It will set methods for actual direct emissions and electricity. It will also cover indirect emissions and default values where data are missing.

The feedback window runs until 25 September. The Commission plans adoption in the fourth quarter. Businesses should review product data flows now. They should stress-test compliance under EU CBAM benchmarks and embedded emissions.

The Metalnomist Commentary

The Commission is tightening CBAM mechanics before 2026. Early clarity on discounts and benchmarks reduces pricing risk. Firms that harmonize plant data with product codes will minimize certificate costs.