embedded emissions

direct emissions released during the production of goods and indirect emissions from the production of electricity that is consumed during the production processes, calculated in accordance with the methods set out in Annex IV and further specified in the implementing acts adopted pursuant to Article 7(7)

Embedded emissions split into two types: direct emissions from the production process itself (including any heating or cooling used), and indirect emissions from the electricity consumed during production. Only direct emissions count for some goods — for those listed in Annex II of the CBAM Regulation, indirect emissions are left out entirely. Emissions are worked out either from an installation's own measured or calculated data, or, where that isn't available, from EU-published default values.

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