EU CBAM Default Emissions Values Reference 2026 — Iron, Steel, Aluminium, Cement, Fertilisers, Hydrogen by HS Code for Indian Exporters
EU CBAM default values 2026: six sectors (iron, steel, aluminium, cement, fertilisers, hydrogen), Reg 2023/1773 Annex IV, transitional → definitive period.
EU CBAM is the most-immediate cross-border-tax exposure for Indian exporters in iron & steel and aluminium — and increasingly in hydrogen as Indian green-hydrogen capacity scales. The default-value regime governs how embedded emissions are reported when the exporter doesn’t have actual-data calculation in place. From January 2026 (Definitive Period), the rules shift from EU-aggregate defaults to country-specific defaults with a mark-up — making actual-emissions reporting materially cheaper than default-route reporting for most Indian production profiles. This page is the structural reference + lookup process; for the actual values, point to the European Commission’s published default-values document.
The six covered sectors
Per Regulation (EU) 2023/956 (base CBAM Regulation):
| Sector | Primary CN / HS codes | Indian export relevance |
|---|---|---|
| Cement | CN 2523 (cement clinker, Portland cement, aluminous cement) | Limited Indian export volume to EU |
| Iron and Steel | CN 72 + 7301-7308 (pig iron, sponge iron, ingots, hot-rolled / cold-rolled flat, structural sections, wire rod, tubes / pipes) | High — JSW, Tata Steel, SAIL, Jindal Steel, AMNS India |
| Aluminium | CN 7601-7616 (unwrought, bars / rods / profiles, wire, plates / sheets / strip, foil, tubes / pipes, structures) | High — Hindalco, Vedanta, Nalco |
| Fertilisers | CN 2808 (nitric acid), 2814 (ammonia), 2834 (nitrates), 3102 + 3105 (mineral / chemical fertilisers) | Limited Indian export volume to EU |
| Electricity | CN 2716 (electrical energy) | Not applicable (no Indian electricity exports to EU) |
| Hydrogen | CN 2804.10 (hydrogen and hydrogen-containing gases) | Emerging — Reliance, Adani, L&T green hydrogen ventures |
For practical purposes for an Indian exporter today, iron & steel + aluminium are the two clusters that dominate CBAM exposure.
Where to find the actual default values
The European Commission published default values on 22 December 2023 for the transitional period. The document is updated periodically. Source of truth:
- Commission’s Default Values document (December 2023) — canonical reference for transitional-period defaults
- CBAM official portal — for updates, definitive-period rules, country-specific defaults (when published from 2026)
Always download the latest version before filing — the EU updates these documents based on operating experience.
Transitional period (Q4 2023 - end 2025) — default-value usage rules
| Quarter | Default usage rule |
|---|---|
| Q4 2023 + Q1+Q2 2024 | Defaults usable without quantitative limit |
| Q3 2024 through end 2025 | Defaults usable only for complex goods and capped at 20% of total embedded emissions per consignment |
| Q3 / Q4 2025 quarterly reports | Last reports under transitional rules |
Definitive period (from 1 January 2026) — country-specific defaults with mark-up
Material change. Default-value regime shifts from EU-aggregate per product category to country-specific defaults:
- Default = average emission intensity of each exporting country
- Plus proportionately designed mark-up (intended to incentivise actual-emissions reporting)
- Implications for India: India-specific defaults for iron / steel / aluminium / fertilisers / hydrogen published by the Commission; defaults will reflect the higher carbon intensity of Indian production (where applicable) + the mark-up
- Actual-emissions reporting becomes more cost-attractive vs country-default route
Most Indian exporters in CBAM-affected sectors are now actively preparing their actual-emissions calculation methodology to avoid the country-default mark-up.
The three-tier methodology under Annex IV
Annex IV of Implementing Regulation 2023/1773 prescribes three tiers:
| Tier | Method | Data effort | Reporting accuracy | Use case |
|---|---|---|---|---|
| Tier 1 | Sector default values | Minimal | Lower (often higher reported emissions than actual) | Transitional period only; from 2026 only with mark-up |
| Tier 2 | Actual production data + industry-typical methodology factors | Mid | Mid | Standard for exporters with basic operational data |
| Tier 3 | Actual data + entity-specific methodology + EU-accredited verifier | High | Highest | Definitive period standard for exporters avoiding country-default mark-up |
From the 2026 definitive period, Tier 3 becomes effectively mandatory for entities wanting to avoid country-default penalties.
What an Indian exporter needs in the CBAM evidence pack
Per CBAM-covered consignment:
- Customer details — EU importer’s CBAM declarant identifier
- Goods details — CN code, quantity in tonnes, country of origin, production installation
- Embedded emissions calculation — direct + indirect + precursor; methodology used; data sources
- EU-accredited verifier attestation (from 2026 definitive period)
- Carbon price paid in country of origin (currently zero for most Indian sectors)
- Reporting cadence — quarterly, end of month following each quarter
For the actual-emissions methodology + verifier coordination, see the EU CBAM service.
What’s different from the rest of Indian regulatory practice
Two things to flag for Indian exporters new to CBAM:
-
The liability is on the EU importer, not on you directly. The EU importer is the CBAM declarant; they file the declaration and surrender CBAM certificates. But the data must come from you. Most EU importers now require CBAM-compliant embedded-emissions data as a contractual condition for new POs in covered sectors — making your CBAM preparation a sales-continuity issue, not just a compliance issue.
-
Default-value declarations typically overstate your emissions. Country-default values include a mark-up specifically designed to incentivise actual-emissions reporting. If you accept defaults, the EU importer pays higher CBAM-certificate cost — and typically passes it back to you in the contract. Switching to actual-emissions calculation is almost always net-positive financially for the Indian exporter.
How BatchWise helps
BatchWise EU CBAM Declaration service — ₹65,000 per quarterly declaration per installation, 72-hour SLA from complete upload to verifier-ready output. Includes:
- Embedded emissions calculation per tonne using actual-data + Tier 2 or Tier 3 methodology
- Verifier-ready emissions report in EU Transitional Registry XML format
- EU-accredited verifier engagement coordination (from 2026 definitive period, where required)
- EU importer liaison support for their CBAM Declaration
For high-volume exporters with multiple installations + multiple HS codes, custom quotes available across the portfolio. See also the CBAM India Exposure Benchmark 2026 for first-party data on Indian CBAM exposure across sectors.
Frequently asked questions
Which sectors and HS codes are in scope for EU CBAM?
Six emissions-intensive sectors with specific CN/HS code coverage. (1) **Cement** — cement clinker, Portland cement, aluminous cement; CN codes 2523. (2) **Iron and Steel** — wide coverage including pig iron, sponge iron, iron / non-alloy steel ingots, semi-finished products, hot-rolled / cold-rolled products, structural steel, tubes / pipes; CN codes 72, 7301-7308 substantively. (3) **Aluminium** — unwrought aluminium, aluminium bars / rods / profiles, wire, plates / sheets / strip, foil, tubes / pipes, structures; CN codes 7601-7616. (4) **Fertilisers** — nitric acid, sulphonitric acids, ammonia, mineral / chemical fertilisers; CN codes 2808, 2814, 2834, 3102, 3105. (5) **Electricity** — electrical energy imports; CN code 2716. (6) **Hydrogen** — hydrogen and hydrogen-containing gases; CN codes 2804.10. For Indian exporters, the practically-affected codes are predominantly **iron & steel** (Indian steel exports to EU) and **aluminium** (Indian aluminium semi-finished products + structural).
What are the default values during the transitional period (until end-2025)?
Default values were published by the European Commission on 22 December 2023 for the transitional period covering the six covered sectors at the **goods-aggregation** level (not at the granular HS code level). The values are sector + product-category specific and aggregate the EU-15 average emission intensity per tonne (or per MWh for electricity). The exact figures are published in the [Commission's Default Values document](https://taxation-customs.ec.europa.eu/system/files/2023-12/Default%20values%20transitional%20period.pdf) and any subsequent updates. **Transitional period usage rules:** Q4 2023 and Q1+Q2 2024 — defaults usable without quantitative limit; from Q3 2024 through end 2025 — defaults usable only for complex goods and capped at 20% of total embedded emissions per consignment. Always download the latest version of the EC's default-values document before filing — the values are subject to update notifications.
How does the 2026 definitive-period default-value regime change things?
Material change. From 1 January 2026 (CBAM Definitive Period), the default-value regime shifts from a single EU-aggregate value per product category to **country-specific defaults** — set at the average emission intensity of each exporting country, increased by a proportionately designed mark-up (the 'mark-up' is intended to incentivise actual-emissions reporting over default usage). Implications for Indian exporters: India-specific default values for iron / steel / aluminium / cement / fertilisers / hydrogen will be published by the Commission; these defaults will reflect the higher carbon intensity of Indian production (where applicable) plus the mark-up. Actual-emissions reporting (via verified emissions data + EU-accredited verifier) becomes more cost-attractive vs the higher country-default route. Many Indian exporters now actively prepare their actual-emissions disclosure to avoid the country-default penalty.
What HS code categories are most relevant for Indian exporters?
By volume of Indian CBAM-relevant exports, the most-affected categories: **Iron & Steel (CN 72, 73)** — hot-rolled flat / coil, cold-rolled flat, structural sections, ingots, wire rod, tubes / pipes for industrial use. Indian exporters in this category include JSW, Tata Steel, SAIL, Jindal Steel, ArcelorMittal Nippon Steel India. **Aluminium (CN 76)** — semi-finished products (bars, rods, profiles, plates, sheets), unwrought aluminium, structural aluminium. Indian exporters: Hindalco / Vedanta / National Aluminium Company (Nalco). **Cement (CN 25.23)** — limited Indian export volume to EU. **Fertilisers (CN 31)** — limited Indian export volume to EU. **Hydrogen (CN 2804.10)** — currently very limited Indian green-hydrogen export; emerging as Indian green-hydrogen capacity scales (Reliance, Adani, Larsen & Toubro green hydrogen ventures). **Electricity** — not applicable for Indian exporters (no electricity exports to EU).
How do I calculate actual embedded emissions vs using default values?
Three-tier methodology under Annex IV of Implementing Regulation 2023/1773. **Tier 1 — Sector-default values** — use the published default values; minimal data collection but typically results in higher reported emissions; usable only under transitional-period rules and from 2026 only with country-specific defaults plus mark-up. **Tier 2 — Use of actual-data with sector-typical-method calculation** — calculate direct + indirect + precursor emissions using the entity's actual production data combined with industry-typical methodology factors. Mid-tier in data effort + reporting accuracy. **Tier 3 — Actual-data + verified entity-specific methodology** — use the entity's actual production data + entity-specific emission factors + EU-accredited verifier attestation. Highest data effort but the cleanest reporting position with the EU importer. Tier 3 becomes effectively mandatory from 2026 definitive period for entities wanting to avoid the country-default mark-up. See the [EU CBAM service](/services/eu-cbam/) for coordinated declaration preparation.
What does an Indian exporter need to prepare for CBAM reporting?
Standard evidence pack per CBAM-covered consignment. (1) **Customer details** — EU importer's CBAM declarant identifier (assigned from January 2026). (2) **Goods details** — CN code, quantity in tonnes, country of origin, production installation. (3) **Embedded emissions calculation** — direct + indirect + precursor emissions per tonne; methodology used (default / actual / hybrid); data sources cited. (4) **EU-accredited verifier attestation** (from 2026 definitive period) — emissions data must be verified by an EU-accredited verifier; BatchWise coordinates this verifier engagement where required. (5) **Carbon price paid in country of origin** — if any carbon price has been paid on the production emissions in India (currently zero for most sectors), reflect in the calculation. (6) **Reporting** — submit to your EU importer for their CBAM Declaration via the EU Transitional Registry (until end 2025) or the EU Permanent CBAM Registry (from 2026). Quarterly submission cadence; deadline is the end of the month following each quarter.
How does BatchWise help with CBAM declaration preparation?
[BatchWise EU CBAM Declaration service](/services/eu-cbam/) — coordination platform pairing your installation with a partner CA / GHG-competent engineer who: (a) calculates embedded emissions per tonne using actual-data + Tier 2 or Tier 3 methodology; (b) prepares the verifier-ready emissions report in EU Transitional Registry XML format; (c) coordinates EU-accredited verifier engagement where required (from 2026 definitive period); (d) supports your EU importer with the CBAM Declaration. Pricing: ₹65,000 per quarterly declaration per installation, 72-hour SLA from complete upload to verifier-ready output. For high-volume exporters with multiple installations + multiple HS codes, contact us for a custom quote across the portfolio.