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Simplification · ELEC-03

Accept the standard default value for indirect emissions where the exporting country's actual electricity mix is cleaner than that default.

Importers of goods with indirect emissions 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 (5) replacing the second paragraph of point 4.3 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 none, annual. as of 2026-08-14
Addressee Importers of goods with indirect emissions from lower-carbon third countriesAct COM(2025) 989 final, 2025/0419 (COD)Article Art. 1(22); Annex II, point (5) replacing the second paragraph of point 4.3 of Annex IV of Regulation (EU) 2023/956Class Businesses

The rule

New — no predecessor
Trigger

third country demonstrates to the Commission an average electricity mix or CO2 emission factor lower than the default for indirect emissions

Obligation

Accept the standard default value for indirect emissions where the exporting country's actual electricity mix is cleaner than that default.

Who is affected

Addressee
Importers of goods with indirect emissions from lower-carbon third countries
Class
Businesses
Sectors
Names Power and heat · Reaches Steel, Aluminium and metals, Cement and concrete, Chemicals and refining
Applies
from entry into force (third day after publication), Art. 2

Burden drivers

No burden drivers recorded on this provision.

Source text

Verbatim

‘Where a third country, or a group of third countries, demonstrates to the Commission, on the basis of reliable data, that the average electricity mix emission factor or CO2 emission factor of price-setting sources in the third country or group of third countries is lower than the default value for indirect emissions, an alternative default value based on that average electricity mix emission factor or on that average CO2 emission factor shall be established for this country or group of countries.

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