The European Commission has confirmed that importers must continue satisfying existing conditions when reporting actual electricity emissions until EU lawmakers adopt a final legislative amendment. The Commission’s position keeps the current conditionality requirements in place while the legislative process continues.
Legislative file 2025/0419(COD) still under negotiation
The European Union is considering changes to the methodology for claiming actual emissions on imported electricity. The European Commission has said the current requirements remain 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 covering downstream products, anti-circumvention and measures aimed at supporting the decarbonisation of electricity imports. The Council 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, meaning the proposed changes have not yet taken effect. Until legislation changes, importers seeking actual-emissions reporting must continue to follow the existing framework.
Commission Q&A sets out continued eligibility conditions
In a Q&A published on 15 October, the Commission cautioned against anticipating outcomes of the legislative process. It stated that importers must keep meeting the existing cumulative conditions until the legislation is amended.
The conditions include having a power purchase agreement (PPA). Importers also need 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. In addition, electricity production must be matched with firmly nominated interconnector capacity over periods no longer than one hour.
Contracting for 2027–2028 depends on evidence requirements
The distinction is relevant for traders developing electricity supply contracts for 2027 and 2028. Contractual arrangements should not assume that a proposed methodology is already applicable.
If the final legislation changes, importers could face gaps in the evidence needed to qualify for actual-emissions treatment. The Commission’s guidance indicates that current eligibility requirements remain the basis for reporting until amendments are adopted.
Cross-border delivery rules affect Southeast Europe projects
The issue is particularly relevant to Southeast Europe, where cross-border electricity flows are influenced by congestion, transit countries and explicit or implicit capacity allocation. Changes to how physical delivery is demonstrated could affect which renewable electricity projects can reflect emissions advantages in commercial terms within the EU market.
Producers and lenders monitor evidence and revenue assumptions
For electricity producers, maintaining documentation that satisfies current rules is presented as necessary until any future relaxation becomes available. 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 also need to monitor 2025/0419(COD) as a potential source of revenue risk. Where a project’s financial model assumes a premium for CBAM-qualified electricity, that premium should be supported by applicable law rather than relying only on a proposal under negotiation.
The EU policy direction described in the source focuses on better recognition of low-carbon electricity. However, eligibility for actual-emissions treatment continues to depend on prescribed physical and contractual evidence rather than solely on environmental characteristics of the electricity.