CBAM Default Values & Markups 2026-2028

Meta Description: CBAM default values and the +10%/+20%/+30% markup schedule explained: how they're calculated, which countries are hit hardest, and why industry says they're too high.

Target Keywords: CBAM default values, CBAM markup 2026 2028, CBAM default value calculation, CBAM benchmarks, default values China Indonesia

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What Default Values Are

When an importer can't provide verified actual emissions data for a product, CBAM falls back on default values published by the European Commission. They represent the emissions intensity of the "typical" production route in the country of origin, but they're set conservatively high and carry a scheduled markup.

"If there is no reliable data from a specific country, the average emission of the 10 countries with the highest emission intensities will be used." Luxembourg Administration de l'environnement, USEE ETS/CBAM webinar (17 December 2025)

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The Markup Schedule

Default values include a built-in markup that rises over time, deliberately making non-reporting more expensive:

Year	Markup	Sectors
2026	+10%	Aluminium, cement, iron & steel, hydrogen
2027	+20%	Same
2028	+30%	Same

Exceptions:

• No markup on electricity imported into the EU
• Fertilisers: 1% markup until 2028

"The planned annual increases of 10, 20 and 30 per cent on the standard values, which are already calculated conservatively, further undermine the announced phased introduction of the CBAM." DIHK, CBAM Challenges 2026 (June 2026)

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How Default Values Are Built

For each CN code, the Commission publishes:

• Direct emissions default (tCO₂e/t)
• Indirect emissions default (tCO₂e/t)
• Total default value
• The default value including markup for 2026 (10%), 2027 (20%), 2028 (30%)
• The underlying production route that determines which CBAM benchmark applies

Example from the webinar (CN 76161000, aluminium nails/tacks):

Column	Value (tCO₂e/t)
Default (direct)	2.49
Default (indirect)	N/A
Default (total)	2.49
2026 incl. 10% markup	2.739
2027 incl. 20% markup	2.988
2028 incl. 30% markup	3.237
Underlying route	(K) primary aluminium

Benchmark indicator: the production route letter (e.g., (A) grey clinker, (C) carbon steel BF/BOF, (D) carbon steel DRI/EAF, (E) carbon steel scrap/EAF, (F) low-alloy BF/BOF, (K) primary aluminium, (L) secondary aluminium) tells you which benchmark applies for the country. Example: for Azerbaijan, route (E) → benchmark 0.027; for China, route (C) → benchmark 1.288.

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Why Industry Says They're Too High

The German Chamber of Commerce (DIHK) argues the default values published in December 2025 are problematic:

1. China and Indonesia values far exceed the JRC study used during the transitional phase, for a very large number of CN codes
2. Supply switching is unrealistic: companies can't move suppliers to lower-default countries at short notice
3. The markup compounds the problem: high defaults plus 30% markup by 2028 undermines the "gradual phase-in" promise
4. No verifiers before September 2026: verification must happen between January and September 2027, so many companies are forced into defaults even when they have real data

"No testing bodies will be accredited before September 2026, but verification must be completed between January and September 2027." DIHK, CBAM Challenges 2026 (June 2026)

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How Benchmarks Interact With Defaults

CBAM benchmarks are based on the top 10% of EU installations' performance:

• Benchmarks covering 2026–2030 are based on EU ETS benchmarks (published early 2026)
• Revised CBAM benchmarks apply from 1 January 2027
• If evidence shows benchmarks are too high or too low, the Commission can revise them

The CBAM factor schedule (free allocation phase-out):

Year	CBAM factor	Free allocation
2026	97.5%	2.5%
2027	95%	5%
2028	90%	10%
2029	77.5%	22.5%
2030	51.5%	48.5%
2031	39%	61%
2032	26.5%	73.5%
2033	14%	86%
2034	0%	100%

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Practical Strategy: Defaults vs. Actual Data

Approach	When it makes sense	Risk
Use default values	Complex supply chain, no verified data available, or verifier capacity unavailable	Pay markup (+10% → +30%), possibly over-pay vs. true emissions
Use actual verified data	Suppliers can produce verified installation data by early 2027	Verification bottleneck; suppliers must be certified

The cost gap matters: with a €75 certificate price, a 2.0 tCO₂/t product assessed at defaults vs. 1.5 tCO₂/t actual data can differ by tens of euros per tonne before the markup even applies. At full phase-in (2034), the cumulative difference is material for any importer at scale.

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Key Takeaways

1. Default values are set conservatively high, based on worst-performing producers when country data is missing
2. Markups rise +10% → +20% → +30% from 2026 to 2028 (no markup on electricity; 1% for fertilisers)
3. China and Indonesia face the highest default values vs. transitional-period JRC benchmarks
4. Benchmark letters in default tables determine which CBAM benchmark applies per country
5. Verifier accreditation shortage forces many importers into defaults, even with real data available

Related: How to Calculate Embedded Emissions | CBAM Certificate Cost Formula | Reduce CBAM Costs

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Frequently Asked Questions

When do corrected default values arrive?

The Commission is correcting some current values in 2026, with a full revision expected in 2027.

Is there a markup on electricity imports?

No. Electricity imported into the EU carries no markup.

Can I use my supplier's actual data instead of defaults?

Yes, but it must be verified by an EU-accredited verifier, and verification must be completed between January and September 2027. Only installations of all upstream suppliers must be certified for actual data to be usable.

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Regulation Status

Field	Value
Last reviewed	2026-08-01
Based on	IR (EU) 2025/2621 (default values and benchmarks), Regulation (EU) 2023/956 Annex IV
Applies to	CBAM permanent phase (2026+)

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References

• IR (EU) 2025/2621
• EU Regulation 2023/956
• DIHK — CBAM Challenges 2026
• Luxembourg Administration de l'environnement — USEE ETS/CBAM webinar (17 Dec 2025)
• European Commission — CBAM

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Last updated: August 2026 | Sources: IR (EU) 2025/2621, DIHK CBAM Challenges 2026, USEE ETS/CBAM webinar 17.12.2025