The European Commission continues to streamline reporting obligations for the Carbon Border Adjustment Mechanism (CBAM). Comprehensive guidance documents have been developed to provide clarity on reporting obligations during the transitional period (October 1, 2023, to December 31, 2025), encompassing timelines and information quality in CBAM reports.

The CBAM’s transitional period extends until the close of 2025, providing stakeholders with a strategic window to adapt to the regulatory landscape. Default values are identified as pivotal in CBAM implementation, offering flexibility for declarants, especially in cases where comprehensive information is unavailable. During the initial three quarterly reports (Q4 2023, Q1 & Q2 2024), declarants have the option to report embedded emissions using default values without quantitative limits. Moving into Q3 2024 until the end of 2025, declarants can still report emissions based on estimations, limited to 20% of the total embedded emissions for complex goods. It’s important to note that the usage of default values qualifies as an ‘estimation.

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Default values transitional period