The draft annex, circulated informally among industry stakeholders, outlines how “specific embedded free allocations” (SEFA) and “free allocation adjustments” (FAA) will be calculated once CBAM enters its definitive phase from January 1, 2026. This is the first hint at what importers will be liable to pay once CBAM kicks in next year, although the benchmarks are still provisional and subject to change. CBAM certificates are calculated by the weekly average EU Emission Trading System (ETS) auction price and the cost of embedded emissions with the CBAM good. To calculate embedded emissions, importers have the choice of ... (full story)