What are the requirements to report actual embedded emissions of electricity, the so called “conditionality”?
The actual emissions data of a specific electricity-producing installation may be used, if the criteria in the CBAM Regulation (Annex IV (5)) are met, the so called ‘conditionality’).
The following conditions shall be met, bearing in mind that the criteria are cumulative.
The amount of electricity for which the use of actual embedded emissions is claimed is covered by a power purchase agreement between the authorised CBAM declarant and a producer of electricity located in a third country;
The installation producing electricity is either directly connected to the Union transmission system or it can be demonstrated that at the time of export there was no physical network congestion at any point in the network between the installation and the Union transmission system;
The installation producing electricity does not emit more than 550 grammes of CO2 of fossil fuel origin per kWh of electricity;
The amount of electricity for which the use of actual embedded emissions is claimed has been firmly nominated to the allocated interconnection capacity by all responsible transmission system operators in the country of origin, the country of destination and, if relevant, each country of transit, and the nominated capacity and the production of electricity by the installation refer to the same period of time, which shall not be longer than one hour.
Source: EC’s Questions and Answers on CBAM
CBAM Regulation
CBAM Regulation 2023_956