Introduction Are you ready for the EU’s Carbon Border Adjustment Mechanism (CBAM)? Understanding the scope of reportable emissions and how to calculate them is crucial for compliance. This article breaks down the key concepts and steps involved.
Inclusions
- Scope 1 - Direct Emission (Company Production): Emissions from your CBAM goods production processes.
- Scope 2 - Indirect Emission (Upstream): Electricity-linked emissions in CBAM goods production.
- Scope 3 - Indirect Emission (Upstream, Complex Goods): CBAM-covered input materials (e.g., steel in a car).
Exclusions
- Scope 3 - Indirect Emission (Upstream): Non-CBAM materials, transport, distribution, waste.
- Scope 3 - Indirect Emission (Downstream): Consumer-end emissions (use, transport, disposal).
Calculating CBAM Embedded Emissions: A 5-Step Guide
- Define System Boundaries: Clearly map out processes related to CBAM goods.
- Monitoring: Track direct emissions (fuel, materials), indirect emissions (electricity), and precursor use. Use calculation-based or measurement-based (CEMS) methods.
- Attribution: Allocate emissions to specific processes and goods.
- Precursor Emissions: Account for embedded emissions from relevant CBAM-covered input materials.
- Final Calculation:
Simple Goods
Complex Goods
Key Takeaways:
- Understanding CBAM scopes is essential for accurate reporting.
- Systematic monitoring and calculation ensure compliance.
- Seek expert guidance if your goods are complex.
Is your business CBAM-ready? Share your compliance journey in the comments!
Find more details on https://cleancarbon.ai/cbam/
You can also reach out to me nb@thinksmartin.com
