Default emission values are one of the most important, and most misunderstood elements of the EU Carbon Border Adjustment Mechanism. They serve as the fallback method for calculating embedded emissions when actual production data is not available from the supplier. Understanding how they work is essential for any importer looking to manage CBAM costs effectively.
What Are Default Values?
Default emission values are standardized figures published by the European Commission that represent the estimated embedded emissions for specific goods from specific countries. They are derived from a combination of country-specific energy mixes, average production technologies, and sector benchmarks.
When an importer cannot obtain actual emission data from their supplier, whether due to supply chain complexity, uncooperative suppliers, or lack of measurement infrastructure, they must use these default values to calculate their CBAM obligations.
How Default Values Are Determined
The European Commission determines default values using several data sources:
- Country-specific energy mix data, including the share of coal, gas, renewables, and nuclear power.
- Average production technology profiles for each sector and country.
- EU ETS benchmark values for comparable EU production.
- International energy statistics and trade data.
These values are updated periodically as new data becomes available and as the Commission refines its methodology. CBAM Desk currently maintains approximately 12,000 default emission values, covering all CBAM-regulated goods across all relevant countries.
Why Actual Data Matters
Default values are typically set at a level that represents average or above-average emissions for a given country and product. This is by design, it creates an incentive for suppliers to provide actual (verified) emission data.
If your supplier operates a modern, efficient plant, perhaps using renewable energy or best-available technology, their actual emissions may be significantly lower than the default value. By using actual data instead of defaults, importers can substantially reduce their CBAM certificate obligations and costs.
Managing Default Values with CBAM Desk
CBAM Desk maintains a comprehensive, always-up-to-date database of all EU default emission values and benchmark figures. When you process an import, our system automatically applies the correct default values based on the goods category and country of origin.
As you collect actual emission data from your suppliers, you can store this in our Supplier & Plant Management module. The system then uses verified actual data where available and falls back to default values where it is not, giving you the most accurate and cost-efficient calculations possible.
This blended approach ensures compliance while maximizing your potential for cost savings. Over time, as more suppliers provide actual data, your reliance on higher default values decreases, and your CBAM costs become more predictable and manageable.