Last week, the European Commission published a draft implementing regulation defining the rules for calculating and recognising carbon prices paid in third countries through the surrender of CBAM certificates.
Key changes:
Deduction of the carbon price actually paid is possible only when actual emissions are reported and confirmed by an independent verifier
When default emissions values are used, only the default carbon prices published by the European Commission will apply
Emissions verifiers may also certify the carbon price at the same time
Both domestic and international carbon credits may be recognised for the surrender of CBAM certificates
International carbon credits must comply with Article 6 of the Paris Agreement and may cover no more than 10% of reported emissions
No additional qualitative or quantitative criteria are prescribed for domestic carbon credits as evidence of effective payment