CBAM Glossary

24 defined terms

The terms that define the EU Carbon Border Adjustment Mechanism — each with its official definition and the regulation it comes from.

activity data

the amount of fuels or materials consumed or produced by a process relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes or, for gases, volume in normal cubic metres, as appropriate

Commission Implementing Regulation (EU) 2025/2547, Article 1(12)

activity level

the quantity of goods to which the same functional unit applies that are produced within the system boundaries of a production process during a reporting period

Commission Implementing Regulation (EU) 2025/2547, Article 1(2)

actual emissions

the emissions calculated based on primary data from the production processes of goods and from the production of electricity consumed during those processes as determined in accordance with the methods set out in Annex IV

Regulation (EU) 2023/956, Article 3(28)

aggregated goods categories

aggregated goods categories pursuant to Table 1 of point 2 of Annex I

Commission Implementing Regulation (EU) 2025/2547, Article 1(4)

carbon price

the monetary amount paid in a third country, under a carbon emissions reduction scheme, in the form of a tax, levy or fee or in the form of emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure, and released during the production of goods

Regulation (EU) 2023/956, Article 3(29)

CBAM certificate

a certificate in electronic format corresponding to one tonne of CO2e of embedded emissions in goods

Regulation (EU) 2023/956, Article 3(24)

default value

a value, which is calculated or drawn from secondary data, which represents the embedded emissions in goods

Regulation (EU) 2023/956, Article 3(27)

direct emissions

emissions from the production processes of goods, including emissions from the production of heating and cooling that is consumed during the production processes, irrespective of the location of the production of the heating or cooling

Regulation (EU) 2023/956, Article 3(21)

embedded emissions

direct emissions released during the production of goods and indirect emissions from the production of electricity that is consumed during the production processes, calculated in accordance with the methods set out in Annex IV and further specified in the implementing acts adopted pursuant to Article 7(7)

Regulation (EU) 2023/956, Article 3(22)

emissions

the release of greenhouse gases into the atmosphere from the production of goods

Regulation (EU) 2023/956, Article 3(3)

EU ETS

the system for greenhouse gas emissions allowance trading within the Union in respect of activities listed in Annex I to Directive 2003/87/EC other than aviation activities

Regulation (EU) 2023/956, Article 3(5)

functional unit

the reference unit used for the calculation of embedded emissions in goods

Commission Implementing Regulation (EU) 2025/2547, Article 1(1)

goods

goods listed in Annex I

Regulation (EU) 2023/956, Article 3(1)

greenhouse gases

greenhouse gases as specified in Annex I in relation to each of the goods listed in that Annex

Regulation (EU) 2023/956, Article 3(2)

indirect emissions

emissions from the production of electricity which is consumed during the production processes of goods, irrespective of the location of the production of the consumed electricity

Regulation (EU) 2023/956, Article 3(34)

installation

a stationary technical unit where a production process is carried out

Regulation (EU) 2023/956, Article 3(30)

operator

any person that operates or controls an installation in a third country

Regulation (EU) 2023/956, Article 3(31)

precursor

any input material into a production process included in the list of goods set out in Annex I to Regulation (EU) 2023/956

Commission Implementing Regulation (EU) 2025/2547, Article 1(7)

production processes

the chemical and physical processes carried out to produce goods in an installation

Regulation (EU) 2023/956, Article 3(26)

production route

a specific technology used in a production process to produce goods

Commission Implementing Regulation (EU) 2025/2547, Article 1(6)

reporting period

the period corresponding to the calendar year during which the good was produced and used by the authorised CBAM declarant as reference for the determination of embedded emissions

Commission Implementing Regulation (EU) 2025/2547, Article 1(5)

source stream

(a) a specific fuel type, raw material or product giving rise to emissions of relevant greenhouse gases at one or more emission sources as a result of its consumption or production; (b) a specific fuel type, raw material or product containing carbon and included in the calculation of greenhouse gas emissions using a mass balance method

Commission Implementing Regulation (EU) 2025/2547, Article 1(8)

system boundary

the group of chemical or physical processes included in the calculation of embedded emissions of goods under the same aggregated goods category

Commission Implementing Regulation (EU) 2025/2547, Article 1(3)

tonne of CO2e

one metric tonne of CO2, or an amount of any other greenhouse gas listed in Annex I with an equivalent global warming potential

Regulation (EU) 2023/956, Article 3(23)

Preview

Your CBAM AI Assistant

This is the preview version of Ask Cora: get instant and precise answers about CBAM. Can't find your answer? Unlock the full version.