According to the leaked document, an indicator called SEFA (Specific Embedded Free Allocation) determines the amount of free allocation adjustment applied based on the production process of a product. The calculation considers the production route, technology used, precursor inputs, annual production period, and total import volume of the product. The draft also includes provisional benchmark values for the 2026–2030 period covering all CBAM sectors such as steel, aluminum, cement, and fertilizers.
For the iron and steel sector, different carbon intensities are defined according to production routes like BF/BOF, DRI/EAF, and Scrap/EAF, while in aluminum, a distinction is made between primary and secondary production. In cement, separate benchmarks are set for grey and white clinker. According to the draft, operators will be required to calculate the SEFA value for each imported product and surrender the corresponding amount of CBAM certificates.
The document is regarded by industry representatives as “one of the most critical technical documents for CBAM implementation” and provides a clear roadmap on how companies should report before the full implementation by the EU in 2026.
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