Which Emissions are Subject to CBAM?

CBAM and Emission Calculations: Which Carbon Emissions Are Tracked?

The Border Carbon Adjustment Mechanism (CBAM) takes a very specific approach to calculating the carbon footprint of products entering the borders of the European Union. This calculation requires a methodology that focuses directly on a product rather than a company's total emissions. So, exactly which emissions does CBAM take into account and could this scope change in the future?

Which Emissions Does CBAM Consider?

CBAM focuses on specific groups of emissions in the life cycle of a product. This aims to identify the full carbon burden that a product "carries on its back".

1. Embedded Emissions (Supply Chain)

   This is one of the most critical components of CBAM. It covers emissions that are generated in the processes before the product reaches you, i.e. as a result of the activities of your suppliers, and that are "embedded" with the product.

2. Operational Emissions

   These are the emissions that occur in your own production process. It includes mainly two categories:

   • Direct Emissions (Scope 1): Greenhouse gases that are directly generated during fuel consumption, stationary combustion activities and the production process (industrial emissions) at your facility.
   • Indirect Emissions from Energy (Scope 2): Emissions generated during the production of the electricity you buy for generation.
3. Process Waste

   Emissions related to the management of waste generated during the production process (if any) are also taken into account.

To summarize, CBAM, like the corporate carbon footprint, only asks for the amount of emissions that fall on that specific product, rather than looking holistically at all of a company's activities.

Can the Scope Expand in the Future (e.g. Transportation)?

Although the current calculation methodology is limited to these three main topics, this scope is expected to expand in the future. In particular, it is highly likely that transportation emissions (logistics activities) will be included in the calculation in the future.

How is CimpactPro adapting to these changes?

What happens if the scope of emissions that CBAM takes into account changes? CimpactPro software is designed to quickly consolidate and respond to such changes.

• Modular Infrastructure

  For example, even if transportation emissions are not currently mandatory, the module to calculate this data is already in the system and is on standby. It can be quickly activated as soon as it becomes mandatory.

• Instant User Notification

  Any changes to legislation or calculation requirements are immediately announced via pop-up notifications that appear when the software is opened. This way, users can be sure that they are always reporting according to the most up-to-date rules.