The revised EU Default Values and provisional benchmarks voted through on December 9th are the hot topic across the CBAM community this week, with a formal endorsement expected by December 17th.
The Debate: Protectionism or Purpose-Fit?
The most significant immediate impact is on the implications for Chinese exporters. With default values raised for many Chinese products, a move specifically made to address competitiveness concerns, some in the market are quick to label this as protectionism. The practical effect of this increase is a higher carbon liability for importers using these default figures, making Chinese goods potentially more expensive at the EU border.
ClearBlue’s Principal Analyst and Asian markets expert, Yan Qin, argues differently, “This is simply CBAM fitting its purpose.” She believes the intent of the Carbon Border Adjustment Mechanism has always been to ensure a level playing field for EU producers who face carbon costs under the EU Emissions Trading System (EU ETS) and to prevent carbon leakage.
“By raising the default values for countries whose products are identified as having higher embedded emissions, the EU is sending a clear, unequivocal signal: the incentive to provide actual, verified emissions data is now paramount,” says Qin.
The Catalyst for Transition
The new values may represent a shock for ill-prepared importers, such as those who haven't yet begun to rigorously track their supply chain's carbon footprint. For them, the sudden increase in the cost of default reporting may create significant, immediate financial pressure.
However, for forward-thinking enterprises, this update serves as a powerful signal to accelerate transition. The pressure to track actual data is exactly the catalyst the industry needs to move forward.
“This necessity is a driver for change, and I have seen this readiness firsthand,” continues Qin. This past October, she had the rare opportunity to conduct field research in China, visiting various steel and aluminium production sites to see their processes up close.
“I had extensive discussions with local operators about the looming reality of the EU CBAM, and the consensus was not resistance, but a readiness to move toward rigorous, actual emissions tracking. They are keen to speed up decarbonisation and become greener," she added.
Data is King: The Convergence of Global Efforts
The push for robust Monitoring, Reporting, and Verification (MRV) is already happening globally, not just in response to the EU. With steel, aluminium, and cement entering the China national ETS this year, the drive for actual data tracking is already underway. This domestic policy creates a natural and powerful synergy with the EU’s requirements.
Moreover, the lower provisional benchmarks entering 2026 alongside the improvements in the default values' calculation methodology demonstrate that the EU ETS logic is working. The benchmarks represent the average emissions performance of the EU's own industrial sectors. As the benchmarks are lowered, it signifies the EU’s expectation of deeper decarbonisation, setting an even stricter standard for the future cost of embedded carbon. It’s not simply about erecting trade barriers; it’s about driving the data transparency required to lower global emissions. This regulatory pressure is fostering a more accountable, greener global industrial landscape.
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