The specific embedded emissions of goods produced in an installation are determined according to one of the following methods (Article 4(1) CBAM Implementing Regulation):
- a determination of the emissions from the source streams based on activity data obtained from laboratory analyses or standard values using measurement systems and calculation factors; or
- a determination of the emissions from emission sources by continuous measurement of the concentration of the relevant greenhouse gas in the flue gas and the flue gas flow rate.
This is the method prescribed as the CBAM method.
However, until 31 December 2024, the specific embedded emissions of goods produced in an installation may be determined using one of the following monitoring and reporting methods, if they lead to similar coverage and accuracy of emissions data:
(a)a carbon pricing scheme where the installation is located; or
(b)a compulsory emission monitoring scheme where the installation is located; or
(c)an emission monitoring scheme at the installation which can include verification by an accredited verifier.
This is the optional use of the supplier based method in the local country.
Lastly, until 31 July 2024 for each import of goods for which the reporting declarant does not have all the information, they may use default values. The use of default values for the purpose of reporting during the transitional period is possible for the first three reporting periods, without quantitative limits. Up until 31 July 2024, 100% of the total embedded emissions may be determined using default values.
For the remaining transitional period (i.e. from 1 July 2024 to 31 December 2025), estimated values may be used but a quantitative limit is applied: for complex goods, up to 20% of the total embedded emissions.
These default values are published and available by the EU.
This can be termed as the optional use of default value method. For more: https://news.pwc.be/default-values-for-the-transitional-period-of-the-eu-cbam-published/
