EU & UK CBAM · Carbon Border Adjustment
CBAM Default Values: Stop Paying Inflated Carbon Rates
If you import iron, steel, aluminium, cement, fertilisers or hydrogen into the EU or UK and do not provide actual production emissions data, you will pay CBAM charges based on default values — rates 50–100% higher than your actual cost. The EU financial obligation starts January 2026. The UK starts January 2027.
The Default Values Cost Problem
CBAM default values are designed to be punitive. The EU calculates them from the worst-performing 10% of installations in each sector. This means importers who rely on defaults pay a carbon cost based on the dirtiest producers in Europe, regardless of how clean their actual supplier is.
At a carbon price of €70–€80 per tonne of CO₂ (June 2026 ETS range), the difference between default and actual embedded emissions on a year’s worth of steel or aluminium imports can be five to six figures. The longer you wait to collect actual data, the more you pay in unnecessary CBAM charges.
Using default values
Embedded emissions calculated from the worst-performing 10% of EU installations. CBAM certificate cost 50–100% higher than actual. No incentive to improve supply chain. Cost compounds annually.
Using actual production data
Embedded emissions reflect your supplier’s actual production route and energy mix. CBAM certificate cost reflects reality. Supply chain incentives align. Margin protected.
Covered Sectors & Default Premium
The table below shows the CBAM-covered sectors, their scope under EU and UK regimes, and the approximate premium that default values carry over typical actual production data.
| Sector | EU CBAM | UK CBAM | Default premium vs actual |
|---|---|---|---|
| Iron & steel | 60–90% | ||
| Aluminium | 50–80% | ||
| Cement | 40–70% | ||
| Fertilisers | 50–75% | ||
| Electricity | Varies by grid | ||
| Hydrogen | 45–80% | ||
| Ceramics | — | 40–65% | |
| Glass | — | 35–60% |
Iron & steel
Default premium: 60–90%
Aluminium
Default premium: 50–80%
Cement
Default premium: 40–70%
Fertilisers
Default premium: 50–75%
Electricity
Default premium: Varies by grid
Hydrogen
Default premium: 45–80%
Ceramics
Default premium: 40–65%
Glass
Default premium: 35–60%
Source: EU Regulation 2023/956 (EU CBAM), UK Carbon Border Adjustment Mechanism (Secondary Legislation 2025). Default premium estimates are indicative and based on sector-average production data vs. published default factors.
Key Dates
EU CBAM transitional period began
Quarterly reporting obligation, no financial cost.
EU CBAM financial obligation begins
Importers must purchase and surrender CBAM certificates. Default values apply unless actual data is provided.
UK CBAM starts
Financial obligation from day one. Covers same sectors as EU plus ceramics and glass.
How MyCustomsInfo® Helps You Replace Defaults
Identify affected imports
The platform audits your declaration history against CBAM-covered CN codes. It flags every entry that will attract CBAM charges and identifies which are currently using default values.
Quantify the default cost
For each affected import line, we calculate the CBAM cost under default values and estimate the cost under actual production data. The difference is your avoidable spend.
Prioritise supply chain outreach
We rank your suppliers by the financial impact of their default values. The supplier with the highest default premium is where you collect actual data first.
Data structuring
Once your supplier provides actual production data, we help structure it in the format required by the EU's Implementing Regulation or the UK's secondary legislation, ready for your CBAM declaration.
Compliance boundary
MyCustomsInfo® does not submit CBAM declarations, purchase CBAM certificates, or provide emissions verification services. We audit your import declarations, identify affected goods, quantify the default-value cost premium, and help structure your supply chain data collection. Your authorised CBAM declarant handles the regulatory submission.
Request a CBAM Default Values Assessment
We will identify how much your default values are costing and where to start collecting actual data.
CBAM Default Values FAQ
Related Compliance Pages
CBAM Compliance Hub
Full EU and UK CBAM compliance guide
C285 Duty Refund
HMRC overpaid duty recovery
Post-Clearance Audit
Multi-regime declaration audit
Deadline Calendar
Regulatory deadlines 2026–2027
Returned Goods Relief
RGR recovery for re-imported goods
Recovery Calculator
Estimate your potential recovery
MyCustomsInfo® does not provide legal, tax, emissions verification or CBAM declaration services. The information on this page is for general guidance only and does not constitute professional advice. EU and UK CBAM regulations, default values and carbon prices are subject to change. © 2026 MyCustomsInfo®. All rights reserved.