Electricity

Electricity is a single line in Annex I: CN 2716 00 00. The in-scope event is import into the EU customs territory across an interconnector from a third country. Intra-EU power flows are outside CBAM; they remain priced under the EU ETS at the generator level.

The default emission factor is set per third country based on the CO2 intensity of the country's power mix. For countries whose grid is coupled with the internal electricity market and is not net-exporting fossil generation, the EU average is used. For uncoupled grids and net-exporting jurisdictions, a country-specific factor applies. The values are published as part of the default-values dataset.

Annex IV distinguishes electricity flows from a third country whose wholesale market is coupled to the EU internal market (single day-ahead coupling, balancing) from flows from uncoupled jurisdictions. Coupled flows are treated as if they were intra-EU for default-factor purposes; uncoupled flows attract the third country's specific factor. The classification is set by the Commission, not by the declarant.

A declarant may use the actual emissions of a specific generator instead of the default factor only if all of the following hold: there is a direct power purchase agreement with that generator; nominated transmission capacity on the interconnector is held for the contract period; the generator is registered in the relevant transmission system operator's schedule; and emissions are measured and verified to the installation methodology. Otherwise the default factor applies.

Embedded electricity in manufactured CBAM goods (aluminium, steel, hydrogen, fertilisers) is reported separately as the indirect emissions component of those goods, not as imported electricity under CN 2716. The two flows do not double-count: the cross-border power import line covers only electricity imported as a commodity.