What are embedded emissions, default values and actual values?

Embedded emissions are the greenhouse gases released to make one tonne of a product, measured in tonnes of CO2 equivalent (CO2e) per tonne of product. The EU importer declares embedded emissions using either:

• Actual values: emissions monitored at the producing installation, calculated under the Commission's methods (Implementing Regulation (EU) 2025/2547) and verified by an accredited CBAM verifier; or
• Default values: standard values set by the Commission in Implementing Regulation (EU) 2025/2621 (corrected in 2026), specific to country and year. Where a country has no specific value, a value based on the ten exporting countries with the highest emission intensities applies.

In the definitive period, default values carry a mark-up: 10% in 2026, 20% in 2027 and 30% from 2028, with a lower 1% mark-up for fertilisers. The Commission says this is so that default values do not underestimate emissions, and that using verified actual values should in most cases be better for the declarant. Default values cannot be used for electricity.

Illustrative example (invented figures)

An EU importer buys 200 tonnes of steel bolts from an Indian MSME in 2026.

• With actual values: suppose the producer's verified embedded emissions are 2.0 tCO2e per tonne. Embedded emissions = 200 × 2.0 = 400 tCO2e.
• With default values: suppose the default value for that product from India were 2.5 tCO2e per tonne (an invented number, not the real default). With the 2026 mark-up of 10%: 2.5 × 1.10 = 2.75 tCO2e per tonne, so 200 × 2.75 = 550 tCO2e.

In this made-up case, verified data lowers the declared emissions by 150 tCO2e. The real default values are in the Commission's published annex and Excel file; check the one for your CN code.