compliance e AEO

CBAM: from July 2024 no default value


The countdown for the phase of CBAM is going ahead: from July 2024 it is not possible make CBAM reporting with default value.

Indeed, as EU Commission explained: “…

  • During the three first quarterly reports (Q4 of 2023 and Q1&2 of 2024), declarants may report embedded emission based on default values made available and published by the European Commission without quantitative limit;
  • From Q3 of 2024 and until the end of 2025, declarants can still report emissions based on estimations but only for complex goods and with a limit of 20% of the total embedded emissions. Using default values would qualify as ‘estimation’….”.

It is interesting to recall that CBAM is a measure aiming to contribute to the EU achieving its ambitious climate policies and to encourage industry worldwide to embrace greener technologies, particularly in countries with less ambitious green standards.

This deadline gives the opportunity to mention the research made by Anatole Boute “Accounting for Carbon Pricing in Third Countries Under the EU Carbon Border Adjustment Mechanism” where it is stated that  “…To avoid penalizing exporters that already paid carbon prices, the EU Carbon Border Adjustment Mechanism credits carbon taxes and Emissions Trading Schemes in third countries…” and “…by only crediting direct carbon pricing instruments (i.e. carbon taxes or ETSs), the EU CBAM has been criticized for discriminating against exporting states that follow a different regulatory approach to the EU carbon pricing model, in breach of international trade and climate law. The EU would fail to adequately recognize the efforts of states opting for instruments of traditional environmental regulation (e.g. performance standards), and indirect carbon pricing (e.g.fuel excise taxes), in contradiction of the flexibility required under the exception regime of the General Agreement on Trade and Tariffs (GATT)…”. In other works, i twill be interesting to

For the readers’convenience there is below the list of the HS code of goods which fall under CBAM regulation.

  • Cement (25070080 – Kaolin and other kaolinic clays, calcined; 25231000 – Cement clinkers; 252321 00 – White Portland cement, whether or not artificially coloured; 25232900 – Other Portland cement; 25233000 – Aluminous cement; 25239000 – Other hydraulic cements); greenhouse GAS related: carbon dioxide;
  • Electricity (27160000 – Electrical energy); greenhouse GAS related: carbon dioxide;
  • Fertilisers (28080000 – Nitric acid; sulphonitric acids; 2814 – Ammonia, anhydrous or in aqueous solution; 28342100 – Nitrates of potassium; 3102 – Mineral or chemical fertilisers, nitrogenous; 3105 – Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium); greenhouse GAS related: carbon dioxide; nitrous oxide;
  • Iron and Steel (72 – Iron and steel [with exceptions]; 7301– Sheet piling of iron or steel; 7302 – Railway or tramway track construction material of iron or steel, the following; 730300 – 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; 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; 7308 – Structures of iron and steel; 7309 – Reservoirs, tanks, vats and similar containers for any material of iron and steel; 7310 – Tanks, casks, drums, cans, boxes and similar containers of iron and steel; 7311 – Containers for compressed or liquefied gas, of iron or steel; 7318 – Screws and other items; 7326 – Other articles of iron or steel); greenhouse GAS related: carbon dioxide;
  • Aluminium; (7601 – Unwrought aluminium; 7603 – Aluminium powders and flakes; 7604 – Aluminium bars, rods and profiles; 7605 – Aluminium wire; 7606 – Aluminium plates, sheets and strip; 7607 – Aluminium foil; 7608 – Aluminium tubes and pipes; 76090000 – Aluminium tube or pipe fittings; 7610 – Aluminium structures; 76110000 – Aluminium reservoirs; 7612 – Aluminium casks; 76130000 – Aluminium containers for compressed or liquefied gas; 7614 – Stranded wire; 7616 – Other articles of aluminium); greenhouse GAS related: Carbon dioxide and perfluorocarbons
  • Chemicals (hydrogen): HS code: 2804 10 000; gas: carbon dioxide.