How to determine embodied emissions?
To determine the embodied emissions liable to the UK CBAM, the liable person will have two options available to them:
- Using data on the actual emissions embodied within CBAM goods
The UK proposed to align with and build on the methodology in use for the UK ETS and for the data to be independently verified to ensure equitable treatment with goods produced in the UK. In addition, it proposed that the independent person responsible for verifying emissions would need to be accredited by a member of the International Accreditation Forum (IAF), such as the United Kingdom Accreditation Service (UKAS) in the UK
- Using default values as determined by the UK government
From 2027, the government will proceed with a single default value set per product, based on global average weighted by production volumes in key UK trade partners. The government will confirm the methodology to be used for their calculation and publish default values in advance of the introduction of the CBAM in 2027
The government also notes concerns around the granularity of default values. Whilst the exact list will be confirmed at a later date, the government’s intention is for default values to be set on a product level basis at an appropriate level of granularity to reflect variances in emissions intensity. For example, this could mean the provision of default values at varying levels of granularity ranging from 4 digit to 8 digit commodity codes for products. The government will consider the feasibility of moving to an alternative approach after 2027, with the most suggested approach from the consultation being country-specific or regional default values per product.
Imported embodied emissions will be measured in tonnes of carbon dioxide equivalent (tCO2e).
Source: GOV.UK