Take the alternative default value from the CO2 emission factor, rather than from the emission factor for electricity, when demonstrating that the exporting area's electricity is cleaner than the applicable default.
Importers and authorised CBAM declarants of electricity from lower-carbon third countries 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 (4) replacing point 4.2.2 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: from entry into force (third day after publication), Art. 2. as of 2026-08-14
- It names one industry by name: Power. as of 2026-08-14
- Compliance is checked by competent authority, annual. as of 2026-08-14
Prior rule vs new rule
declarant demonstrating a lower electricity emission factor for the exporting area
The prior point 4.2.2 already provided that where reliable data show the CO2 emission factor in a third country, group of third countries or region is lower than the specific default value or than the Union CO2 emission factor, 'an alternative default value based on that CO2 emission factor may be used'. The demonstration route, the permissive verb and the comparison against both benchmarks are all pre-existing.
reliable data demonstrate an electricity emission factor lower than the specific default value or the Union factor
Take the alternative default value from the CO2 emission factor, rather than from the emission factor for electricity, when demonstrating that the exporting area's electricity is cleaner than the applicable default.
Who is affected
Burden drivers
Source text
Where it can be demonstrated, on the basis of reliable data, that the emission factor for electricity in a third country, a group of third countries or a region within a third country is lower than the specific default value determined by the Commission or lower than the emission factor for electricity in the Union, an alternative default value based on that emission factor for electricity may be used for that third country, group of third countries or region within a third country.
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