The European Commission has confirmed that importers must continue meeting current requirements when reporting actual electricity emissions until EU lawmakers adopt a final legislative amendment. The Commission’s position applies while the legislative process is ongoing.
Methodology changes under discussion
The European Union is considering adjustments to the methodology used to claim actual emissions for electricity imported into the EU. The European Commission has said the existing conditionality requirements remain binding until co-legislators adopt a final amendment.
The legislative file 2025/0419(COD) was introduced in December 2025 as part of a broader package. That package covers downstream products, anti-circumvention and measures intended to encourage the decarbonisation of electricity imports.
The Council of the European Union adopted its negotiating position in June, and the European Parliament issued its first-reading position in September. An agreed final text still requires interinstitutional negotiations.
Commission Q&A stresses continued eligibility requirements
In a Q&A published on 15 October, the Commission cautioned against anticipating how the legislative process will end. Until the legislation changes, importers seeking to report actual electricity emissions must continue satisfying the existing cumulative conditions.
Those conditions include having a power purchase agreement (PPA). Importers must also show a direct physical connection to the EU transmission system or provide evidence that no physical congestion occurred.
The requirements further include compliance with a 550 gCO₂/kWh fossil-fuel emissions threshold. Importers must also match electricity production with firmly nominated interconnector capacity for periods no longer than one hour.
Contract planning for 2027 and 2028
The Commission’s approach affects traders developing supply contracts for 2027 and 2028. Contractual arrangements should not assume that a proposed methodology is already in force.
If the final legislation changes, importers could face gaps in the evidence needed to qualify for actual-emissions treatment. This risk applies even where contract design targets future eligibility.
Southeast Europe cross-border delivery evidence
The issue is described as particularly relevant to Southeast Europe, where cross-border electricity flows are influenced by congestion and transit countries. Capacity allocation can occur through explicit or implicit mechanisms in those flows.
Changes to how physical delivery is demonstrated could affect which renewable electricity projects are able to reflect their emissions advantages in EU market value. The impact would depend on whether projects can meet whatever evidence standards apply after any legislative amendment.
Evidence management for producers and lenders
For electricity producers, maintaining documentation that satisfies current rules is identified as necessary while eligibility depends on prescribed evidence. Records referenced include hourly production and nomination data, contractual links, grid-connection evidence and controls allocating electricity to individual importers.
Banks financing renewable assets intended to supply the EU market are also expected to monitor the legislative file. The potential revenue risk is linked to whether financial models rely on a premium for CBAM-qualified electricity supported by applicable law rather than by an unfinalised proposal.