Commission Implementing Regulation (EU) 2025/2547 of 10 December 2025 laying down rules for the application of Regulation (EU) 2023/956 of the European Parliament and the Council as regards the methods for the calculation of emissions embedded in goods

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	2025/2547	22.12.2025

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing a carbon border adjustment mechanism [^ntr1-L_202502547EN.000101-E0001], and in particular Article 7(7) thereof,

Whereas:

• (1) Pursuant to Regulation (EU) 2023/956, embedded emissions in goods imported into the customs territory of the Union from 2026, whether they are determined based on actual or default values, are to be calculated in accordance with the methods set out in Annex IV to that Regulation. Such calculation methods are to build upon the methodology applicable under the Emission Trading Scheme for installations located in the Union (EU ETS), as specified in Commission Implementing Regulation (EU) 2018/2066 [^ntr2-L_202502547EN.000101-E0002].

• (2) The applicable methodology for the calculation of embedded emissions during the period lasting from 1 October 2023 until 31 December 2025 is laid down in Commission Implementing Regulation (EU) 2023/1773 [^ntr3-L_202502547EN.000101-E0003]. During that transitional period, the Commission gathered valuable experience and information from stakeholders, experts, and reporting declarants. In parallel with technical consultations with the Member States, including at expert level, the Commission carried out extensive consultations with relevant stakeholders, including industry representatives, to gather input in its preparatory work on the rules laid down in this Regulation.

• (3) Based on the experience gained during the transitional period, it is necessary to adjust the calculation methodology to ensure the effectiveness of the Carbon Border Adjustment Mechanism (CBAM). Such changes should aim at enhancing accuracy of calculations of embedded emissions of goods, decreasing the risk of circumvention of CBAM obligations, ensuring that compliance with monitoring and calculation rules can be adequately verified, and maintaining consistency with the EU ETS, while limiting the administrative burden for operators, authorised CBAM declarants, competent authorities and the Commission.

• (4) In order to quantify and calculate the embedded emissions of goods, system boundaries should be laid down. The system boundaries should be aligned with those covered under the EU ETS.

• (5) In order to quantify and calculate the specific embedded emissions of goods, operators should monitor emissions at installation level, determine which of those emissions are to be attributed to a production process, and then attribute those emissions to goods covered by that production process.

• (6) In order to determine the installation-level emissions which are attributable to goods, production processes should be defined for goods to which the same functional unit applies. The functional unit should be, as the general rule, the tonnes of goods under the same CN code listed in Annex I to Regulation (EU) 2023/956. However, since for cement and fertilisers, the emissions are dependent on the clinker content and nitrogen content in the goods respectively, the functional units should be the tonnes of clinker and tonnes of nitrogen contained in those goods. For some fertilisers, a supplementary unit measuring aspects other than the weight of goods, as laid down in the Annexes to Council Regulation (EEC) No 2658/87 [^ntr4-L_202502547EN.000101-E0004], is available to account for differences in composition between goods covered by the same CN code. For those cases, that supplementary unit should constitute the functional unit. The functional units for iron and steel should be determined following the general rule, since the CN codes are already allowing differentiation in the calculation of embedded emissions. For aluminium and hydrogen, the general rule is sufficient to define a functional unit that covers goods which are sufficiently similar in their quality and composition so as to justify the definition of a unique production process for the purpose of the calculation of embedded emissions.

• (7) For the purpose of avoiding deviations in the calculation of emissions of goods to which the same functional unit applies, where such goods are produced using different production routes within an installation, the production process should, for such goods, not be different for each production route but should encompass all production routes, which means that the emissions attributable to goods to which the same functional unit applies should be the weighted average of the emissions of all the production routes used within the installation to produce goods to which the same functional unit applies.

• (8) In order to ensure accuracy in the process of monitoring emissions, dedicated monitoring rules should be laid down, including rules applicable to precursors. Those rules should align with the relevant EU ETS monitoring rules.

• (9) In order to support the calculation and the verification of actual embedded emissions pursuant to Article 8 of Regulation (EU) 2023/956, as well as the review of the CBAM declarations pursuant to Article 19(2) of that Regulation, operators should set out the main methodological criteria underpinning the collection of data at the installation throughout the year and the calculation of emissions in a monitoring plan. To ensure that the monitoring plan contains the necessary elements for verification, a template with the minimum requirements should be set out. To ensure an efficient verification process and review process of CBAM declarations by the Commission and competent authorities, the monitoring plans should be submitted in a language commonly used and understood for the purpose of monitoring, calculating and verifying emissions.

• (10) In order to quantify and calculate specific embedded emissions of goods covered by a production process, rules should be laid down for attributing emissions of a production process to goods.

• (11) The elements of evidence required to allow authorised CBAM declarants to report actual values for electricity and for electricity consumed in the production process of goods in accordance with Article 7(3) and (4) of Regulation (EU) 2023/956 should provide sufficient assurance as to the fulfilment of the criteria laid down in points 5 and 6 of Annex IV to that Regulation.

• (12) To allow the accredited verifier to check whether the criteria for using actual values for indirect emissions are fulfilled, the operator of the installation producing electricity and the operator of the installation using that electricity to produce a good should include the necessary information in their emissions reports. Since the operators should be required to demonstrate, for the fulfilment of the criteria referred to in point 6 of Annex IV to Regulation (EU) 2023/956, that electricity for which the actual emissions are claimed is actually flowing from the installation where it is produced to the installation where that electricity is used for the production of goods, and since the flow of electricity should be measured through smart metering systems at both installations for this purpose, the data from the smart metering systems should be provided by each operator to the respective verifier.

• (13) To allow the accredited verifier to check whether the criteria for using actual values for electricity imported into the customs territory of the Union are fulfilled, operators of installations producing electricity in a third country should include the necessary information in the emissions report. For this purpose, since operators might not have direct access to the relevant elements of evidence, they may need to receive certain elements of evidence, including for the demonstration of the lack of physical network congestion in accordance with point 5(b) of Annex IV to Regulation (EU) 2023/956, or for the demonstration of the occurred nomination of capacity for the import of electricity at the interconnector in accordance with point 5(d) of Annex IV to that Regulation, from other persons, including the authorised CBAM declarant, the importer and the transmission system operator.

• (14) To ensure simplicity for the operators in the calculation of embedded emissions, where an installation producing goods listed in Annex I to Regulation (EU) 2023/956 and not listed in Annex II to that Regulation, receives, during a reporting period, electricity from different installations or sources, the indirect embedded emissions of the goods should by default be determined as the weighted average of the embedded emissions of the electricity received from different installations. To ensure proportionality with respect to this default method, where the operators can provide evidence demonstrating that the installation producing goods not listed in Annex II to Regulation (EU) 2023/956 used, for a production process, only electricity from a given source or installation, or from a subset of sources or installations, the indirect embedded emissions of goods to which that production process applies may be determined separately.

• (15) To enable the verifier to conclude with reasonable assurance that the operator’s emissions report is free from material misstatements and to allow the Commission and competent authorities to review the CBAM declaration, to perform risk assessments and to prevent practices of circumvention of the rules laid down in this Regulation, the operator’s emissions report should contain information on the installation and the goods produced, including their specific embedded emissions, as well as other information facilitating checks on the accuracy of the calculation of the specific embedded emissions. Since the calculation of the adjustment for free allocation depends on data from the installation, the emissions report should also contain information relevant for the calculation of the adjustment for free allocation in accordance with Article 31 of Regulation (EU) 2023/956. To ensure an efficient verification process and review process of CBAM declarations by the Commission and competent authorities, the operator’s emission reports should be submitted in a language commonly used and understood for the purpose of monitoring, calculating and verifying emissions.

• (16) Due to the commercially sensitive and personal nature of some data related to the demonstration of the fulfilment of the criteria laid down in point 5 of Annex IV to Regulation (EU) 2023/956, operators should, where relevant, prepare a declarant-specific addendum to the operator’s emissions report, which is not to be disclosed to authorised CBAM declarants other than the one to which it refers.

• (17) Due to the commercially sensitive nature of some data elements contained in the operator’s emissions report, operators should prepare a summary version of that report to be included in the verification report and to be made accessible to authorised CBAM declarants. Where operators are registered in the CBAM Registry in accordance with Article 10 of Regulation (EU) 2023/956, the operators should be able to choose to disclose to the authorised CBAM declarant only the summary version of the operator’s emissions report and, where applicable, the relevant declarant-specific addendum to the operator’s emissions report.

• (18) To ensure compliance with the rules on monitoring and calculation of emissions as laid down in this Regulation, operators should correct, in the monitoring plan and operator’s emissions report, any misstatements, non-conformities or non-compliance notified by the verifier as part of the verification activity. Following any such correction, operators should provide the verifier with the final version of the document. To ensure completeness of information required to calculate and verify embedded emissions in complex goods, where the operator’s emissions report includes actual embedded emissions of precursors which were not produced at the installation, operators should also provide the verifier with the verification report of the producing installation.

• (19) The default values should be set for each third country and for each of the goods on the basis of a methodology which is based on the most recent and reliable information, and which takes into consideration the availability of reliable data in third countries. Where the Commission receives alternative reliable data demonstrating that the default values are too high or too low, it should revise the relevant default values.

• (20) For indirect emissions, the default value should be calculated based on the average of the emission factor of the country of origin electricity grid. Such method of calculation is the most suitable to achieve both the prevention of carbon leakage as well as the preservation of the environmental integrity of CBAM, given that it reflects to the largest possible degree decarbonisation efforts of third countries’ electricity grids while maintaining a high level of protection against the risk of carbon leakage. In order to reflect the impact of decarbonisation policies of third countries, such as the increase in renewable energy production, as well as climatic conditions on the yearly electricity supply in the countries concerned, whilst avoiding an excessive volatility of the emission factor due to anomalous years, including attributable to exceptional climatic conditions or other unforeseeable events, the emission factor should be calculated on the basis of the simple average of the emission factor for the most recent five-years period before the reporting for which reliable data is available.

• (21) For electricity imported into the customs territory of the Union, in order to reflect the impact of decarbonisation policies in the third country or group of third countries, on the emission intensity of the electricity production in the countries concerned, whilst avoiding an excessive volatility of the emission factor due to anomalous years, including attributable to exceptional climatic conditions or other unforeseeable events, the CO2 emission factor should be calculated on the basis of the average of the yearly CO2 emission factors for the most recent five-year period for which reliable data is available.

• (22) To allow authorised CBAM declarants to use alternative default values pursuant to point 4.2.2, point 4.3 and point 7 of Annex IV to Regulation (EU) 2023/956, it is necessary to lay down the detailed conditions to be complied with for that purpose. To provide clarity on when alternative default values can be used, rules should be laid down on the modality and timeline for providing alternative official data to the Commission, on the method of calculation of the alternative default values, and on the modality of making the alternative default values available for use by the authorised CBAM declarants. To ensure legal certainty for authorised CBAM declarants, it is necessary that the alternative default values are formally adopted and made available.

• (23) For the determination of embedded emissions of goods on the basis of actual values, in accordance with Regulation (EU) 2023/956, operators are to calculate the emissions occurring at the installation for the production of these goods during a given reporting period. To simplify the use of the correct reporting period during which the goods were produced, the reporting period used for such determination should correspond to a calendar year.

• (24) To simplify the identification of the reporting period for goods imported into the customs territory of the Union, and in order to alleviate the administrative burden on authorised CBAM declarants, a presumption should be established that such goods were produced during the calendar year of import. Authorised CBAM declarants should be given the possibility to rebut the presumption by providing evidence demonstrating the actual period during which the goods were produced. Since the monitoring, calculation and verification methodology laid down in this Regulation is to start applying only from 2026, the reporting period cannot be any period before 2026.

• (25) For precursors used in the production of a complex good, operators of the complex good should, for the purpose of determining embedded emissions on the basis of actual emissions, identify the applicable reporting period during which the precursor was produced and use the corresponding verified actual values. To simplify this identification and in order to alleviate the administrative burden on operators, a presumption should be established that precursors used in the production of a complex good were produced during the reporting period during which that complex good was produced. Operators should be given the possibility to rebut the presumption by providing evidence to the verifier demonstrating the actual period during which the precursor was produced. Since the monitoring, calculation and verification methodology laid down in this Regulation is to start applying only from 2026, the reporting period cannot be before 2026.

• (26) To ensure consistency, the reporting period applicable to the determination of embedded emissions on the basis of actual values should be the same as the reporting period applicable to the calculation of the adjustment for free allocation and as the reporting period applicable to the determination of the carbon price paid in accordance with Article 9 of Regulation (EU) 2023/956.

• (27) To ensure simplicity for the operators in the calculation of embedded emissions, where an installation producing complex goods receives precursors under a given CN code produced in an installation during different reporting periods, the embedded emissions of the complex goods should, for the part of the emissions embedded in those precursors, be determined as the weighted average of emissions embedded in the precursors under that CN code produced during different reporting periods.

• (28) To ensure simplicity for the operators in the calculation of embedded emissions, where an installation producing complex goods receives precursors under a given CN code from different installations, the embedded emissions of the complex goods should be determined by default, for the part of the emissions embedded in those precursors, as the weighted average of emissions embedded in the relevant precursors received from the different installations. To ensure proportionality with respect to this default method, where the operators can provide evidence demonstrating that the installation producing the complex goods used, for a given production process, only precursors from a given installation, or from a subset of installations, the embedded emissions of precursors used in that production process may be determined separately.

• (29) To ensure flexibility for operators in their choice of using actual values or default values, where the embedded emissions of complex goods are determined based on actual values, operators should be allowed to use default values for one or more precursors. In such case, operators should be able to combine the use of actual values for one or more precursors with the use of default values for other precursors.

• (30) Where the Commission proceeds to revise this Implementing Act, it should conduct a public consultation to uphold transparency and to ensure a meaningful participation of all relevant stakeholders, in accordance with the Commission’s Better Regulation Guidelines.

• (31) The measures provided for in this Regulation are in accordance with the opinion of the CBAM Committee,

HAS ADOPTED THIS REGULATION:

CHAPTER 1 GENERAL PROVISION

Article 1

Definitions

For the purposes of this Regulation, the definitions laid down in Article 1 of Commission Implementing Regulation (EU) 2025/2546 [^ntr5-L_202502547EN.000101-E0005] and Article 1 of Commission Delegated Regulation (EU) 2025/2551 [^ntr6-L_202502547EN.000101-E0006] apply.

The following definitions also apply:

• (1) ‘functional unit’ means the reference unit used for the calculation of embedded emissions in goods;

• (2) ‘activity level’ means the quantity of goods to which the same functional unit applies that are produced within the system boundaries of a production process during a reporting period;

• (3) ‘system boundary’ means the group of chemical or physical processes included in the calculation of embedded emissions of goods under the same aggregated goods category;

• (4) ‘aggregated goods categories’ means aggregated goods categories pursuant to Table 1 of point 2 of Annex I;

• (5) ‘reporting period’ means the period corresponding to the calendar year during which the good was produced and used by the authorised CBAM declarant as reference for the determination of embedded emissions;

• (6) ‘production route’ means a specific technology used in a production process to produce goods;

• (7) ‘precursor’ means any input material into a production process included in the list of goods set out in Annex I to Regulation (EU) 2023/956;

• (8) ‘source stream’ means either of the following:

• (a) a specific fuel type, raw material or product giving rise to emissions of relevant greenhouse gases at one or more emission sources as a result of its consumption or production;

• (b) a specific fuel type, raw material or product containing carbon and included in the calculation of greenhouse gas emissions using a mass balance method;

• (9) ‘emission source’ means a separately identifiable part of an installation or a process within an installation, from which relevant greenhouse gases are emitted;

• (10) ‘calculation factors’ means net calorific value, emission factor, preliminary emission factor, oxidation factor, conversion factor, carbon content or biomass fraction;

• (11) ‘measurement system’ means a complete set of measuring instruments and other equipment used to determine variables for the monitoring and calculation of emissions;

• (12) ‘activity data’ means the amount of fuels or materials consumed or produced by a process relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes or, for gases, volume in normal cubic metres, as appropriate.

CHAPTER 2 USE OF ACTUAL VALUES

Article 2

Actual values

Where the embedded emissions are determined based on actual emissions in accordance with Article 7(2), point (a), of Regulation (EU) 2023/956, the rules laid down in this Chapter shall apply.

Article 3

System boundaries

Article 4

Production processes and functional unit

• (a) for CN codes 2808 00 00 , 2814 , 3105 , the kilograms of nitrogen contained in the goods produced under the respective CN codes;

• (b) for the CN codes of fertilisers other than the ones listed in point (a), the supplementary units as laid down in Regulation (EEC) No 2658/87 of the goods produced under the respective CN codes.

Article 5

Monitoring methodology at installation level

Article 6

Attribution of emissions to goods

The specific embedded emissions of goods shall be determined by attributing direct and, where relevant, indirect emissions of the production processes to the specific goods in accordance with Annex III.

Article 7

Identification of the reporting period

Where a good was imported during the year 2026, the reporting period shall be the year 2026. Where the good was imported during another year than 2026, the reporting period shall by default be the calendar year during which the good was imported. However, if there is sufficient evidence to identify the actual time of production, the reporting period shall be the period during which the good was produced.

Article 8

Use of actual values for electricity and indirect emissions

Article 9

Indirect emissions where installations use electricity from different sources

Article 10

Operator’s emissions report

CHAPTER 3 USE OF DEFAULT VALUES

Article 11

Default values

Article 12

Alternative default values

The authorised CBAM declarant may use alternative default values in accordance with point 4.2.2, point 4.3 and point 7 of Annex IV to Regulation (EU) 2023/956 where the conditions referred to in point D.2.3 or point D.4.4 of Annex II to this Regulation, or in Annex V to this Regulation, are met.

CHAPTER 4 SPECIFIC RULES APPLICABLE TO COMPLEX GOODS

Article 13

Reporting period of precursors

The default reporting period of a precursor shall be the year of production of the complex good. However, where operators provide the verifier with sufficient evidence to identify the actual time of production, the reporting period shall be the period during which the precursor was produced.

Article 14

Precursors produced during different reporting periods or in different installations

Article 15

Combined use of actual and default values

The specific embedded emissions for complex goods may be calculated by determining actual emissions for the production processes within the installation producing the complex goods, and default values for one or more precursors of the complex goods.

CHAPTER 5 FINAL PROVISION

Article 16

Entry into force

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 10 December 2025.

For the Commission

The President

Ursula VON DER LEYEN

[^ntr1-L_202502547EN.000101-E0001]: OJ L 130, 16.5.2023, p. 52, ELI: http://data.europa.eu/eli/reg/2023/956/oj.

[^ntr2-L_202502547EN.000101-E0002]: Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (OJ L 334, 31.12.2018, p. 1, ELI: http://data.europa.eu/eli/reg_impl/2018/2066/oj).

[^ntr3-L_202502547EN.000101-E0003]: Commission Implementing Regulation (EU) 2023/1773 of 17 August 2023 laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period (OJ L 228, 15.9.2023, p. 94, ELI: http://data.europa.eu/eli/reg_impl/2023/1773/oj).

[^ntr4-L_202502547EN.000101-E0004]: Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1, ELI: http://data.europa.eu/eli/reg/1987/2658/oj).

[^ntr5-L_202502547EN.000101-E0005]: Commission Implementing Regulation (EU) 2025/2546 of 10 December 2025 on the application of the principles for verification of declared embedded emissions pursuant to Regulation (EU) 2023/956 of the European Parliament and of the Council (OJ L, 2025/2546, 22.12.2025, ELI: http://data.europa.eu/eli/reg_impl/2025/2546/oj).

[^ntr6-L_202502547EN.000101-E0006]: Commission Delegated Regulation (EU) 2025/2551 of 20 November 2025 supplementing Regulation (EU) 2023/956 of the European Parliament and of the Council by specifying the conditions for granting accreditation to verifiers, for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of accreditation bodies (OJ L, 2025/2551, 22.12.2025, ELI: http://data.europa.eu/eli/reg_del/2025/2551/oj).

ANNEX I

Definitions, functional unit and system boundaries

1. DEFINITIONS

For the purpose of this Annex and of Annexes II to VII the following definitions apply:

• (1) ‘uncertainty’ means a parameter, associated with the result of the determination of a quantity, that characterises the dispersion of the values that could reasonably be attributed to the particular quantity, including the effects of systematic as well as of random factors, expressed in per cent, and describes a confidence interval around the mean value comprising 95 % of inferred values taking into account any asymmetry of the distribution of values;

• (2) ‘combustion emissions’ means greenhouse gas emissions occurring during the exothermic reaction of a fuel with oxygen;

• (3) ‘emission factor’ means the average emission rate of a greenhouse gas relative to the activity data of a source stream assuming complete oxidation for combustion and complete conversion for all other chemical reactions;

• (4) ‘oxidation factor’ means the ratio of carbon oxidised to CO2 as a consequence of combustion to the total carbon contained in the fuel, expressed as a fraction, considering carbon monoxide (CO) emitted to the atmosphere as the molar equivalent amount of carbon dioxide (CO2);

• (5) ‘conversion factor’ means the ratio of carbon emitted as CO2 to the total carbon contained in the source stream before the emitting process takes place, expressed as a fraction, considering CO emitted to the atmosphere as the molar equivalent amount of CO2;

• (6) ‘accuracy’ means the closeness of the agreement between the result of a measurement and the true value of the particular quantity or a reference value determined empirically using internationally accepted and traceable calibration materials and standard methods, taking into account both random and systematic factors;

• (7) ‘calibration’ means the set of operations, which establishes, under specified conditions, the relations between values indicated by a measuring instrument or measuring system, or values represented by a material measure or a reference material and the corresponding values of a quantity realised by a reference standard;

• (8) ‘conservative’ means that a set of assumptions is defined in order to ensure that no under-estimation of reported emissions or over-estimation of production of heat, electricity or goods occurs;

• (9) ‘biomass’ means biomass as defined in Article 2, point (24) of Directive (EU) 2018/2001 of the European Parliament and of the Council [^ntr1-L_202502547EN.001201-E0001]; it includes bioliquids and biofuels as defined in Article 2, point (32) and (33), biomass fuels as defined in Article 2, point (27) and biogas as defined in Article 2 point (28) of Directive (EU) 2018/2001;

• (10) ‘waste’ means any substance or object which the holder discards or intends or is required to discard, excluding substances that have been intentionally modified or contaminated in order to meet this definition;

• (11) ‘residue’ means a substance that is not the end product that a production process directly seeks to produce; it is not a primary aim of the production process and the process has not been deliberately modified to produce it;

• (12) ‘agricultural, aquaculture, fisheries and forestry residues’ means residues that are directly generated by agriculture, aquaculture, fisheries and forestry and that do not include residues from related industries or processing;

• (13) ‘legal metrological control’ means the control exercised by a public authority or regulator of the measurement tasks intended for the field of application of a measuring instrument, for reasons of public interest, public health, public safety, public order, protection of the environment, the levying of taxes and duties, the protection of consumers and fair trading;

• (14) ‘data flow activities’ mean activities related to the acquisition, processing and handling of data that are needed to draft an emissions report from primary source data;

• (15) ‘net calorific value’ (NCV) means the specific amount of energy released as heat when a fuel or material undergoes complete combustion with oxygen under standard conditions, less the heat of vaporisation of any water formed;

• (16) ‘process emissions’ means greenhouse gas emissions other than combustion emissions occurring as a result of intentional and unintentional reactions between substances or their transformation, for a primary purpose other than the generation of heat, including from the following processes:

• (a) the chemical, electrolytic or pyrometallurgical reduction of metal compounds in ores, concentrates and secondary materials;

• (b) the removal of impurities from metals and metal compounds;

• (c) the decomposition of carbonates, including those used for flue gas cleaning;

• (d) chemical syntheses of products and intermediate products where the carbon bearing material participates in the reaction;

• (e) the use of carbon containing additives or raw materials;

• (f) the chemical or electrolytic reduction of metalloid oxides or non-metal oxides such as silicon oxides and phosphates;

• (17) ‘batch’ means an amount of fuel or material representatively sampled and characterised, and transferred as one shipment or continuously over a specific period of time;

• (18) ‘mixed material’ means a material which contains both biomass and fossil carbon;

• (19) ‘preliminary emission factor’ means the assumed total emission factor of a fuel or material based on the carbon content of its biomass fraction and its fossil fraction before multiplying it by the fossil fraction to produce the emission factor;

• (20) ‘fossil fraction’ means the ratio of fossil carbon to the total carbon content of a fuel or material, expressed as a fraction;

• (21) ‘biomass fraction’ means the ratio of carbon stemming from biomass to the total carbon content of a fuel or material, expressed as a fraction;

• (22) ‘continuous emission measurement’ means a set of operations having the objective of determining the value of a quantity by means of periodic measurements, applying either measurements in the stack or extractive procedures with a measuring instrument located close to the stack, whilst excluding measurement methodologies based on the collection of individual samples from the stack;

• (23) ‘inherent CO2’ means CO2 which is part of a source stream;

• (24) ‘fossil carbon’ means inorganic and organic carbon that is not biomass;

• (25) ‘measurement point’ means the emission source for which continuous emission measurement systems (CEMS) are used for emission measurement, or the cross-section of a pipeline system for which the CO2 flow is determined using continuous measurement systems;

• (26) ‘fugitive emissions’ means irregular or unintended emissions from sources that are not localised, or too diverse or too small to be monitored individually;

• (27) ‘standard conditions’ means temperature of 273,15 K and pressure conditions of 101 325 Pa defining normal cubic metres (Nm³);

• (28) ‘proxy data’ means annual values which are empirically substantiated or derived from accepted sources and which an operator uses to substitute a data set for the purpose of ensuring complete reporting;

• (29) ‘measurable heat’ means a net heat flow transported through identifiable pipelines or ducts using a heat transfer medium, such as, in particular, steam, hot air, water, oil, liquid metals and salts, for which a heat meter is or could be installed;

• (30) ‘heat meter’ means a thermal energy meter or any other device to measure and record the amount of thermal energy produced based upon flow volumes and temperatures;

• (31) ‘non-measurable heat’ means all heat other than measurable heat;

• (32) ‘waste gas’ means a gas containing incompletely oxidised carbon in a gaseous state under standard conditions which is a result of any of the processes listed in point (16);

• (33) ‘multifunctional process’ means a process that delivers multiple outputs or whose outputs feed into several production processes;

• (34) ‘co-product’ means any of two or more products resulting from the same production process;

• (35) ‘non-CBAM good’ means any good produced in the installation that is not included in Annex I to Regulation (EU) 2023/956;

• (36) ‘data set’ means one type of data, either at installation level or production process level as relevant in the circumstances, as any of the following:

• (a) the amount of fuels or materials consumed or produced by a production process as relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes, or for gases as volume in normal cubic metres, as appropriate, including for waste gases;

• (b) a calculation factor;

• (c) net quantity of measurable heat, and the relevant parameters required for determining this quantity, in particular:

• — mass flow of heat transfer medium, and

• — enthalpy of transmitted and returned heat transfer medium, as specified by composition, temperature, pressure and saturation;

• (d) quantities of non-measurable heat, specified by the relevant quantities of fuels used for producing the heat, and the NCV of the fuel mix;

• (e) quantities of electricity;

• (f) quantities of CO2 transferred between installations;

• (g) quantities of precursors received from outside the production process, and their relevant parameters, such as country of origin, used production route, specific direct and indirect emissions;

• (37) ‘minimum requirements’ means monitoring methods using the minimum efforts allowed for determining data in order to result in emission data acceptable for the purpose of Regulation (EU) 2023/956;

• (38) ‘recommended improvements’ means monitoring methods which are proven means to ensure that data are more accurate or less prone to mistakes than by mere application of minimum requirements;

• (39) ‘control system’ means the operator’s risk assessment and entire set of control activities, including the continuous management thereof, that an operator has established, documented, implemented and maintained pursuant to point A.2 of Annex II.

2. MAPPING OF CN CODES TO AGGREGATED GOODS CATEGORIES

Table 1 in this point defines aggregated goods categories for each CN code listed in Annex I to Regulation (EU) 2023/956. Those categories are used for the purpose of defining system boundaries of production processes of the goods listed in Annex I to that Regulation.

Table 1

Mapping of CN codes to aggregated goods categories

CN code	Aggregated goods category	Greenhouse gas
Cement
2507 00 80 – Other kaolinic clays	Calcined clay	Carbon dioxide
2523 10 00 – Cement clinkers	Cement clinker	Carbon dioxide
2523 21 00 – White Portland cement, whether or not artificially coloured 2523 29 00 – Other Portland cement 2523 90 00 – Other hydraulic cements	Cement	Carbon dioxide
2523 30 00 – Aluminous cement	Aluminous cement	Carbon dioxide
Electricity
2716 00 00 – Electrical energy	Electricity	Carbon dioxide
Fertiliser
2808 00 00 – Nitric acid; sulphonitric acids	Nitric acid	Carbon dioxide and nitrous oxide
3102 10 – Urea, whether or not in aqueous solution	Urea	Carbon dioxide
2814 – Ammonia, anhydrous or in aqueous solution	Ammonia	Carbon dioxide
2834 21 00 – Nitrates of potassium 3102 – Mineral or chemical fertilisers, nitrogenous except 3102 10 (Urea) 3105 – Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus, and potassium; other fertilisers – Except: 3105 60 00 – Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium	Mixed fertilisers	Carbon dioxide and nitrous oxide
Iron and Steel
2601 12 00 – Agglomerated iron ores and concentrates, other than roasted iron pyrites	Sintered Ore	Carbon dioxide
7201 – Pig iron and spiegeleisen in pigs, blocks, or other primary forms Some products under 7205 (Granules and powders, of pig iron, spiegeleisen, iron, or steel) may be covered here	Pig Iron	Carbon dioxide
7202 1 – Ferro-manganese	FeMn	Carbon dioxide
7202 4 – Ferro-chromium	FeCr	Carbon dioxide
7202 6 – Ferro-nickel	FeNi	Carbon dioxide
7203 – Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products	DRI	Carbon dioxide
7206 – Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203 ) 7207 – Semi-finished products of iron or non-alloy steel 7218 – Stainless steel in ingots or other primary forms; semi-finished products of stainless steel 7224 – Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel	Crude steel	Carbon dioxide
7205 – Granules and powders, of pig iron, spiegeleisen, iron or steel (if not covered under category pig iron) 7208 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated 7209 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated 7210 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated 7211 – Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated 7212 – Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated 7213 – Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel 7214 – Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling 7215 – Other bars and rods of iron or non-alloy steel 7216 – Angles, shapes and sections of iron or non-alloy steel 7217 – Wire of iron or non-alloy steel 7219 – Flat-rolled products of stainless steel, of a width of 600 mm or more 7220 – Flat-rolled products of stainless steel, of a width of less than 600 mm 7221 – Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel 7222 – Other bars and rods of stainless steel; angles, shapes and sections of stainless steel 7223 – Wire of stainless steel 7225 – Flat-rolled products of other alloy steel, of a width of 600 mm or more 7226 – Flat-rolled products of other alloy steel, of a width of less than 600 mm 7227 – Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel 7228 – Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel 7229 – Wire of other alloy steel 7301 – Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel 7302 – Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails 7303 – Tubes, pipes and hollow profiles, of cast iron 7304 – Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel 7305 – Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel 7306 – Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel 7307 – Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel 7308 – Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel 7309 – Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7310 – Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7311 – Containers for compressed or liquefied gas, of iron or steel 7318 – Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel 7326 – Other articles of iron or steel	Iron or steel products	Carbon dioxide
Aluminium
7601 – Unwrought aluminium	Unwrought aluminium	Carbon dioxide and perfluorocarbons
7603 – Aluminium powders and flakes 7604 – Aluminium bars, rods and profiles 7605 – Aluminium wire 7606 – Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm 7607 – Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm 7608 – Aluminium tubes and pipes 7609 00 00 – Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) 7610 – Aluminium structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures 7611 00 00 – Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7612 – Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7613 00 00 – Aluminium containers for compressed or liquefied gas 7614 – Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated 7616 – Other articles of aluminium	Aluminium products	Carbon dioxide and perfluorocarbons
Chemicals
2804 10 00 – Hydrogen	Hydrogen	Carbon dioxide

3. FUNCTIONAL UNIT AND SYSTEM BOUNDARIES

3.1.   Cross-sectoral rules

Specific embedded emissions shall be calculated as the emissions of the production process and, for complex goods, the embedded emissions of the precursors to produce the functional unit of the good during the reporting period.

The system boundaries are defined per aggregated goods categories and cover the direct emissions, the indirect emissions from electricity consumption where relevant under Regulation (EU) 2023/956, emitted by all processes directly or indirectly linked to the production processes, and the embedded emissions of precursors, independently of whether these precursors are produced in the installation or acquired from a different installation. In addition to these general rules, the specific details of each aggregated goods category are set out in points 3.2 to 3.19. Any CBAM goods produced by means of a production route not listed in points 3.2 to 3.19 is subject to the cross-sectoral rules described in this point, and to the sector-specific rules if the production route is a combination of the production routes listed in in points 3.2 to 3.19.

The purchase and maintenance of infrastructure and equipment are excluded from the system boundaries.

When the production process of complex goods listed in Annex II to Regulation (EU) 2023/956 includes one or more precursors not listed in that Annex, the indirect emissions of those precursors will be included in the calculation of the embedded emissions of the complex goods. When the production process of complex goods not listed in that Annex includes one or more precursors listed in that Annex, the indirect emissions of these precursors will not be included in the calculation of the embedded emissions of the complex goods.

3.2.   Calcined clay

3.2.1.   Special provisions

None.

3.2.2.   System boundary

For calcined clay, direct emissions monitoring shall encompass:

• — all processes directly or indirectly linked to the production processes, such as raw material preparation, mixing, drying, and calcining, and flue gas cleaning;

• — CO2 emissions from the combustion of fuels as well as from raw materials, where relevant.

3.3.   Cement clinker

3.3.1.   Special provisions

No distinction shall be made between grey and white cement clinker.

3.3.2.   System boundary

For cement clinker, direct emissions monitoring take into account:

• — calcination of limestone and other carbonates in the raw materials, conventional fossil kiln fuels, alternative fossil-based kiln fuels and raw materials, biomass kiln fuels (such as waste-derived fuels), non-kiln fuels, non-carbonate carbon content in raw materials, or alternative raw materials such as fly ash used in the raw meal in the kiln and raw materials used for flue gas scrubbing;

• — the additional provisions of point B.9.2 of Annex II.

3.4.   Cement

3.4.1.   Special provisions

None.

3.4.2.   System boundary

For cement, direct emissions monitoring shall take into account:

• — all processes directly or indirectly linked to the production processes, where relevant for drying of materials.

3.5.   Aluminous cement

3.5.1.   Special provisions

None.

3.5.2.   System boundary

For aluminous cement, direct emissions monitoring shall take into account:

• — all processes directly or indirectly linked to the production processes where fuel is combusted;

• — process emissions from carbonates in raw materials, if applicable, and flue gas cleaning.

3.6.   Hydrogen

3.6.1.   Special provisions

Only the production of pure hydrogen or mixtures of hydrogen with nitrogen usable in ammonia production shall be considered. Not covered are the consumption of synthesis gas or of hydrogen as precursor within refineries or organic chemical installations, where hydrogen is exclusively used within those plants and not used for the production of goods listed in Annex I to Regulation (EU) 2023/956.

3.6.2.   System boundary

3.6.2.1.   Steam reforming and partial oxidation

For those production routes, direct emissions monitoring shall take into account:

• — all processes directly or indirectly linked to hydrogen production and the separation of hydrogen and carbon monoxide, and flue gas cleaning;

• — all fuels used in the hydrogen production process irrespective of their energetic or non-energetic use, and fuels used for other combustion processes including for the purpose of producing hot water or steam.

3.6.2.2.   Steam cracking

For that production route, direct emissions monitoring shall take into account:

• — all processes directly linked to hydrogen production;

• — all processes directly or indirectly linked to the production processes, and from flue gas cleaning.

3.7.   Ammonia

3.7.1.   Special provisions

None.

3.7.2.   System boundary

3.7.2.1.   Haber-Bosch process with steam reforming of natural gas or biogas

For that production route, direct emissions monitoring shall encompass:

• — all processes directly or indirectly linked to the production processes, and from flue gas cleaning;

• — all fuels are to be monitored, irrespective of whether used as energetic or non-energetic input;

• — where biogas is used, the provisions of point B.3.3 of Annex II.

3.7.2.2.   Haber-Bosch process with gasification of coal or other fuels

That production route applies where hydrogen is produced by gasification of coal, heavy refinery fuels or other fossil feedstock. Input materials may include biomass, for which the provisions of point B.3.3 of Annex II shall be taken into account.

For that production route, direct emissions monitoring shall encompass:

• — all processes directly or indirectly linked to the production processes, and from flue gas cleaning;

• — each fuel input shall be monitored as one fuel stream, irrespective of whether it is used as energetic or non-energetic input.

3.8.   Nitric acid

3.8.1.   Special provisions

None.

3.8.2.   System boundary

For nitric acid, direct emissions monitoring shall take into account:

• — all processes directly or indirectly linked to the production processes, and from flue gas cleaning;

• — all sources emitting N2O from the production process, including unabated and abated emissions. Any N2O emissions from the combustion of fuels are excluded from monitoring.

3.9.   Urea

3.9.1.   Special provisions

None.

3.9.2.   System boundary

For urea, direct emissions monitoring shall take into account:

• — all processes directly or indirectly linked to the production processes, and from flue gas cleaning;

• — where CO2 is received from another installation as process input, the CO2 received shall be considered an emission, if not already counted as emission of the installation where the CO2 was produced.

3.10.   Mixed fertilisers

3.10.1.   Special provisions

This point applies to the production of all kinds of nitrogen containing fertilisers, including ammonium nitrate, calcium ammonium nitrate, ammonium sulphate, ammonium phosphates, urea ammonium nitrate solutions, as well as nitrogen-phosphorus (NP), nitrogen-potassium (NK) and nitrogen-phosphorus-potassium (NPK) fertilisers. All kinds of operations are included such as mixing, neutralisation, granulation, prilling, irrespective of whether only physical mixing or chemical reactions take place.

The amounts of different nitrogen compounds contained in the final product shall be recorded in accordance with Regulation (EU) 2019/1009 of the European Parliament and of the Council [^ntr2-L_202502547EN.001201-E0002]:

• — content of N as ammonium (NH4 ⁺);

• — content of N as nitrate (NO3 ^–);

• — content of N as Urea;

• — content of N in other (organic) forms.

3.10.2.   System boundary

For mixed fertilisers, direct emissions monitoring shall encompass:

• — all processes directly or indirectly linked to the production processes, such as driers and for heating input materials, and from flue gas cleaning.

3.11.   Sintered Ore

3.11.1.   Special provisions

This aggregated goods category includes all kinds of iron ore pellet production (for sale of pellets as well as for direct use in the same installation) and sinter production. To the extent covered by CN code 2601 12 00 , also iron ores used as precursors for ferro-chromium (FeCr), ferro-manganese (FeMn) or ferro-nickel (FeNi) may be covered.

3.11.2.   System boundary

For sintered ore, direct emissions monitoring shall encompass:

• — all processes emitting CO2 from process materials such as limestone and other carbonates or carbonate ores;

• — all processes emitting CO2 from all fuels including coke, waste gases such as coke oven gas, blast furnace gas or converter gas; directly or indirectly linked to the production process, and materials used for flue gas cleaning.

3.12.   FeMn (Ferro-Manganese), FeCr (Ferro-Chromium) and FeNi (Ferro-Nickel)

3.12.1.   Special provisions

This process covers only the production of the alloys identified under CN codes 7202 1, 7202 4 and 7202 6. Other iron materials with significant alloy content such as spiegeleisen are not covered. NPI (nickel pig iron) is included if the nickel content is greater than 10 %.

Where waste gases or other flue gases are emitted without abatement, CO contained in the waste gas shall be considered as the molar equivalent of CO2 emissions.

3.12.2.   System boundary

For FeMn, FeCr and FeNi, direct emissions monitoring shall encompass:

• — all processes directly or indirectly linked to the production processes emitting CO2 emissions caused by fuel inputs, irrespective of whether they are used for energetic or non-energetic use;

• — all processes directly or indirectly linked to the production processes emitting CO2 emissions from process inputs such as limestone and from flue gas cleaning;

• — all processes directly or indirectly linked to the production processes emitting CO2 emissions from the consumption of electrodes or electrode pastes;

• — carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with point B.3.2 of Annex II.

3.13.   Pig Iron

3.13.1.   Special provisions