Get Ready for CBAM Compliance Insights for Aluminium Industry Players 15 JANUARY 2024
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We fill the gap for comprehensive, accurate, verifiable and auditable CO2e calculations, using: Asset-level, independent emissions database Robust, globally-trusted methodologies
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Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
The EU CBAM The EU’s Carbon Border Adjustment Mechanism has officially been signed into law. Starting in October 2024:
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Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
The EU CBAM The EU’s Carbon Border Adjustment Mechanism has officially been signed into law. Starting in October 2024:
10-50 EUR per tCO2e 9
not declared or under-declared
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Checklist for importers
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Checklist for importers
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Checklist for installations
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Checklist for installations
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Primary vs. Default Values
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Primary Installation Data
EC Default Values
Installation-specific
Global averages
By product, includes embedded emissions, qualifying parameters, carbon price due and production route information.
Already released by the EU Commission Global default value per CN code. Designed to be penalising.
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Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
Emissions covered in CBAM carbon pricing from 2026
© CarbonChain 2024. All rights reserved.
Indirect vs direct emissions •
During the transitional period, direct and indirect emissions are reported for aluminium (per earlier slides)
•
From 2026, the carbon pricing will not apply to those indirect emissions, because of WTO rules, but the EU wants to include them ASAP.
•
The cost difference is significant (estimated 6x more when indirect emissions are counted)
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Contents
© CarbonChain 2024. All rights reserved.
01
Overview of CBAM
02
Who’s who (exporters vs importers, declarants vs installations)
03
Who will be affected in the aluminium value chain?
04
CBAM carbon accounting versus GHG Protocol
05
Direct vs indirect emissions
06
Preparing for CBAM certificates
07
Q&A
The EU Carbon Border Adjustment Mechanism Pricing will be phased in as ETS free allocations are phased out
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Likely price paid for typical steel and aluminium Assume EU ETS price = 100 euro/tonne CO2e 2026
2027
2028
2029
2030
2031
2032
2033
2.50%
5%
10%
22.5%
48.50%
61%
73.50%
86%
100%
1000t steel
€4,000
€8,000
€16,000
€36,000
€77,600
€97,600
€117,600
€137,600
€160,000
1000t aluminium
€5,175
€10,350
€20,700
€46,575
€100,395
€126,270
€152,145
€178,020
€207,000
© CarbonChain 2024. All rights reserved.
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Likely price paid for steel and aluminium
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How CarbonChain can help with CBAM Complete CBAM declaration with installation data filled in, for each reporting period
Identify & track which imports fall under CBAM
Importer Send data collection forms to your suppliers & track which ones have submitted their data
Compare CBAM costs of current & potential suppliers to better inform purchALFEDng decision making
Complete your data collection and supporting fill in your CBAM report over the first year
Installation Develop a monitoring methodology
Share Product Carbon Footprints to all of your international clients
CarbonChain platform
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Thank you Contact rumi@carbonchain.com
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Appendix: Aluminium Products: CBAM System Boundary
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© CarbonChain 2024. All rights reserved.