CBAM goods are products from six sectors (cement, iron and steel, aluminum, fertilizers, hydrogen and electricity) whose import into the EU requires embedded emissions to be reported and paid for. Embedded emissions are the greenhouse gases released in producing the goods, expressed per tonne of product.
Which goods are covered by CBAM
The scope is set by Regulation (EU) 2023/956 through commodity codes. Each sector covers not only its main product but related items as well:
| Sector | Examples of goods |
|---|---|
| Cement | Clinker, cement |
| Iron and steel | Pig iron, semi-finished products, rolled products, certain articles |
| Aluminum | Unwrought aluminum, rolled products, certain articles |
| Fertilizers | Nitrogen and compound fertilizers, ammonia |
| Hydrogen | Hydrogen |
| Electricity | Electricity imports |
For the exact list of codes and any amendments to it, see regulatory documents. For a general introduction, see CBAM: what it is.
What embedded emissions are made up of
Direct emissions are emissions at the installation itself: fuel combustion and production processes (for example, carbonate decomposition in clinker production). In essence, they are close to a company's Scope 1.
Indirect emissions are emissions from generating the electricity consumed to make the goods. In essence, they are close to Scope 2. Which sectors include them in the CBAM obligation, and from which stage, is set by the applicable rules.
Precursors are input materials that are themselves CBAM goods, such as clinker for cement or pig iron for steel. Their embedded emissions are added to those of the final product.
For how this relates to the scopes used in corporate accounting, see Scope 1, 2 and 3.
Specific embedded emissions
An EU buyer needs a specific figure, tonnes of CO₂e per tonne of goods, rather than an annual total. To get it, the installation's emissions for the reporting period are allocated to the products it made. If the installation produces several goods, emissions are split by production process.
Worked example
An installation makes a single product. For this example, we use factors of 2.04 kg CO₂e/m³ for natural gas and 0.726 kg CO₂e/kWh for grid electricity (an estimated value). CBAM reporting uses the factors and methods set by the CBAM rules; the example only illustrates the logic.
| Annual indicator | Value |
|---|---|
| Natural gas | 2,000,000 m³ |
| Grid electricity | 3,000,000 kWh |
| Product output | 10,000 t |
- Direct emissions: 2,000,000 × 2.04 = 4,080,000 kg = 4,080 t CO₂e.
- Indirect emissions: 3,000,000 × 0.726 = 2,178,000 kg = 2,178 t CO₂e.
- Specific direct emissions: 4,080 / 10,000 = 0.408 t CO₂e/t.
- Specific indirect emissions: 2,178 / 10,000 = 0.218 t CO₂e/t (rounded).
If the process involves process emissions or precursors, they must be added: fuel consumption alone does not reveal them. For choosing emission factors, see Emission factors.
Actual data or default values
If the producer has not provided actual data, the importer can use the default values established for CBAM. These are usually conservative, so actual installation data generally works out better for both sides.
How it works in the platform
- The CBAM contour is still in development and marked “Soon”: the platform does not yet calculate specific embedded emissions per tonne of product.
- You can already keep the input data: set up the installation as a facility under Facilities, and in Data entry enter fuel (gas in m³, for example), electricity and heat month by month; process emissions from clinker and lime production are calculated from the mass of product.
- The platform selects the methodology and emission factor from its reference catalog, and every record shows what was applied. The installation's direct emissions go to Scope 1, and indirect emissions from purchased electricity go to Scope 2.
Frequently asked questions
How do embedded emissions differ from a product carbon footprint?
A carbon footprint under ISO 14067:2018 usually covers more life cycle stages. CBAM embedded emissions are calculated under their own rules, within set boundaries of the production process.
Do emissions have to be calculated for every shipment?
As a rule, specific emissions are determined for the reporting period per installation and product type, and then applied to the mass of goods delivered.
What if an installation makes both CBAM goods and other products?
Emissions are allocated between production processes, and only the relevant share is assigned to the CBAM goods.