ANNEX IISupplementary provisions
ANNEX II The following Annex VII is added: ‘ANNEX VII The single mass-based threshold 1. The single mass-based threshold referred to in Article 2a shall be set at 50 tonnes of net mass. 2. For the purpose of Article 2a(3), the following methodology shall apply: chosen such that Where: 99 % is the target share of emissions; is the mass-threshold in tonnes allowing to capture a given target share of emissions; Annual emissions per importer q i,j is the quantity of imports in tonnes by importer i of the CN code j; J i is the number of CN codes imported by importer i among the four sectors considered (aluminium, cement, fertilisers, iron and steel); EI j is the emission intensity for CN code j ( 1 ) ; Total emissions: the total emissions in CO 2 of the four CBAM sectors considered, that is the sum of corresponding emissions for all importers: , where N is the number of importers; : the total quantity in tonnes of goods listed in Annex I imported by importer i; is an indicator function equal to 1 when (that is, when an importer is importing quantities higher than the mass-threshold ), 0 otherwise. To capture uncertainty over changes in trade patterns while maintaining the environmental objective of this Regulation, a margin of 0,25 percentage points is added to the above target share of emissions. The single mass-based threshold shall be rounded to the nearest ten.’. ( 1 ) The emission intensities E j are based on default values (without mark-up) for emissions published for the transitional period. For cement and fertiliser products, direct emissions and indirect emissions are considered; for aluminium and iron and steel products, only direct emissions are considered. For future updates of the single mass-based threshold, the default values shall be set in accordance with the methods set out in Annex IV without the mark-up as referred to in point 4.1 of Annex IV.