The "CBAM Readiness: Technical Study on Indirect Emissions in the CBAM" examines the inclusion and treatment of indirect emissions within the European Union’s Carbon Border Adjustment Mechanism (CBAM). CBAM aims to prevent carbon leakage by imposing a carbon price on imports of certain goods, reflecting the carbon costs faced by EU producers. While CBAM primarily targets direct emissions from production, indirect emissions—those linked to electricity consumption and other upstream processes—pose complex challenges in measurement, allocation, and verification. This technical study analyzes methodologies for accounting indirect emissions, assesses their materiality across sectors covered by CBAM, and evaluates the implications for importers and exporters. It also explores data availability, reporting frameworks, and potential impacts on trade competitiveness. The study highlights the importance of clear guidance and harmonized approaches to ensure transparency, fairness, and effectiveness in incorporating indirect emissions. Overall, it provides recommendations to enhance CBAM readiness by addressing technical and operational barriers, supporting policymakers and stakeholders in aligning CBAM implementation with broader climate and trade objectives.

Published on: 2026-06-09 at 00:15:02