Hold a power purchase agreement that involves the physical delivery of electricity, not merely a direct contractual purchase, in order to claim actual embedded emissions for imported electricity.
Importers and authorised CBAM declarants of electricity claiming actual emissions must comply, and it sits in an act that is partly law and partly a proposal.
Why it matters
The act this comes from is partly law in force and partly a proposal that can still change.
- It is Art. 1(22); Annex II, point (1) replacing point (f) of point 1 of Annex IV of Regulation (EU) 2023/956, in the CBAM extension — downstream goods and anti-circumvention. as of 2026-08-14
- The act gives its timing as: applies from 1 January 2026 per Art. 2 (points 1 and 6 of Annex II). as of 2026-08-14
- It names one industry by name: Power. as of 2026-08-14
- Compliance is checked by accredited third party, annual. as of 2026-08-14
Prior rule vs new rule
authorised CBAM declarant relying on a power purchase agreement to claim actual embedded emissions
The prior Annex IV point 1(f) defined a power purchase agreement as 'a contract under which a person agrees to purchase electricity directly from an electricity producer', with no delivery requirement.
claim to use actual embedded emissions for imported electricity under Annex IV point 5
Hold a power purchase agreement that involves the physical delivery of electricity, not merely a direct contractual purchase, in order to claim actual embedded emissions for imported electricity.
Who is affected
Burden drivers
Source text
(f) ‘power purchase agreement’ means a contract under which a person agrees to purchase electricity directly from an electricity producer and that involves the physical delivery of electricity;
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