The European Commission has confirmed that importers must continue meeting existing conditions when reporting actual electricity emissions until EU lawmakers adopt a final legislative amendment. The Commission’s position means the current conditionality requirements remain applicable while the legislative process is ongoing.
Methodology changes under discussion in EU legislative file 2025/0419(COD)
The European Union is considering changes to the methodology used to claim actual emissions on imported electricity. The European Commission has stressed that the current conditionality requirements stay binding until co-legislators adopt a final amendment.
The pending legislative file 2025/0419(COD) was introduced in December 2025 as part of a broader package. The package covers downstream products, anti-circumvention measures, and steps intended to encourage the decarbonisation of electricity imports.
The Council of the European Union adopted its negotiating position in June, and the European Parliament delivered its first-reading position in September. Even with an agreed final text, interinstitutional negotiations are still required before any amendment can take effect.
Commission Q&A of 15 October reiterates binding eligibility requirements
In a Q&A published on 15 October, the Commission cautioned against anticipating the outcome of the legislative process. Until the legislation changes, importers seeking to report actual electricity emissions must continue to satisfy existing cumulative conditions.
The conditions include having a power purchase agreement (PPA). Importers also need either a direct physical connection to the EU transmission system or evidence that no physical congestion occurred.
Eligibility further requires compliance with a 550 gCO2/kWh fossil-fuel emissions threshold. Importers must also match electricity production with firmly nominated interconnector capacity over periods no longer than one hour.
Contracting for 2027 and 2028 depends on evidence under current rules
The Commission’s clarification affects traders developing electricity supply contracts for 2027 and 2028. Contractual arrangements should not assume that a proposed methodology is already in force.
If the final legislation changes later, importers could face gaps in the evidence needed to qualify for actual-emissions treatment. The risk is tied to whether documentation requirements align with any new methodology adopted by lawmakers.
Southeast Europe cross-border flows and physical delivery evidence
The issue is particularly relevant for Southeast Europe, where cross-border electricity flows are influenced by congestion and transit countries. Capacity allocation can also be affected by explicit or implicit mechanisms in cross-border contexts.
Changes to how physical delivery is demonstrated could affect which renewable electricity projects can convert their emissions advantages into commercial value in the EU market. This depends on whether projects can provide documentation consistent with whatever rules are ultimately adopted.
Producers and lenders monitor evidence and potential revenue assumptions
For electricity producers, maintaining evidence that satisfies current rules is presented as necessary until any legislative change occurs. 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 monitoring relates to potential revenue risk where project models assume a premium for CBAM-qualified electricity.
In such cases, the premium should be supported by applicable law rather than relying solely on a proposal under negotiation. Until any amendment is adopted, eligibility for actual-emissions treatment continues to depend on prescribed physical and contractual evidence rather than only on the environmental characteristics of electricity.