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Terms and Definitions

This page contains common terminology and definitions used in the various IACBAM standards.

Use the search field below to quickly find a specific term or definition, or browse the full list in alphabetical order.

Showing all 13 definitions.

Term Definition
Applicant An organization seeking certification under IACBAM 3002:2025.
Audit trail The complete, traceable record linking a reported figure back to its source data, including supporting evidence.
Authorized Declarant The EU-based importer or customs representative who bears legal and financial liability for CBAM obligations and who depends on the installation's reported embedded emissions to calculate the CBAM liability due.
CBAM Carbon Border Adjustment Mechanism. The EU regulatory instrument that attaches a carbon cost to imports of certain goods.
Certified Consultant An individual holding a current IACBAM 3006:2026 Foundation or Practitioner certificate.
Competency domain A defined grouping of related data, processes and behaviours within this standard.
Embedded emissions Greenhouse gas emissions associated with the production of a CBAM good, calculated in accordance with applicable CBAM rules.
IACBAM International Association for Carbon Border Adjustment Mechanism. The body that owns and administers this standard.
Installation A facility that produces a good subject to CBAM reporting obligations.
Objective evidence Verifiable data, records, or statements of fact supporting the existence or verity of an audit finding, obtained through document review, observation, interview, or calculation testing.
Specific Embedded Free Allocation (SEFA) Specific Embedded Free Allocation (SEFA) is the quantity of free allocation, expressed in tonnes of CO2 per tonne of goods, calculated in accordance with Commission Implementing Regulation (EU) 2025/2620. This value represents the reduction in the number of CBAM certificates to be surrendered per tonne of imported goods, corresponding to the level of free EU ETS allowances still allocated to EU producers of equivalent goods. Derived from the product level CBAM benchmark and the applicable annual CBAM factor, SEFA ensures that the carbon cost applied to imports remains equivalent to the effective carbon cost faced by domestic EU industry during the free allocation phase-out period (2026–2034).
Verification readiness The state in which an installation's MRV system and evidence base are sufficiently complete and well-governed to undergo formal third-party verification.
Verifier An accredited third-party body that conducts formal verification of embedded emissions reports. Distinct from a consultant operating under this standard.