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CBAM & Iron_Steel_ Decoding Specific Embedded Emissions Calculations

Learn how the Carbon Border Adjustment Mechanism (CBAM) calculates specific embedded emissions in iron and steel production, impacting global trade.<br>

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CBAM & Iron_Steel_ Decoding Specific Embedded Emissions Calculations

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  1. CBAM&Iron/Steel:DecodingSpecific Embedded Emissions Calculations Step1-Definesystemboundaries Everythingshowninredcolor,alongwithGeneratedElectricity(showninskyblue)isto be monitored Step2- MonitoringMethod 1. Determine quantities of fuels and input materials consumed

  2. Determine calculation factors e.g. net calorific value, emission factor Fuels – from Annex E of the document CBAM Guidance_non_EU installations Process CO2 emissions – using a mass balance approach (carbon in – carbon out) — anodes & soda ash, for example Electricity – from any available public dataset for your country PFC (CF4 and C2F6) emissions – use either the slope method or the overvoltage method described in the document CBAM Guidance_non_EU installations Calculate emission by multiplying consumption with calculation factor Step3-Attributionofdirectandindirectemissions Apply corrections – Correction for exported waste Gas. Step4 and 5 – Precursors and calculation of Specific Embedded Emissions Step-by-step calculations for SEE

  3. How to read this table – Input – This column shows allthe inputs used in theSteel making process AD (tonnes) – is the amount of the input material used CC– iscarbon content– every materialhas %of carboncontent. We needto usethatin the calculation Bio fraction – fraction of the energy content of the bioenergy product 16% of the plastic waste is biomass hence that should be excluded from the total emission i.e. subtract biomass fraction from the Emissions calculated for that Input Formulae Biomass Fraction = AD CC% Emission Factor * Bio fraction Emissions = AD CC% Emission Factor – Biomass Fraction Sum of the Emissionsof all the inputsis taken Output is the produced CBAM goods in this process Output AD is considered negative because this is the carbon that is still there in a final product and hence it needs to be subtracted from the Sum of Input Emissions Totaldirectemission= sumofInput Emission+Sumof OutputEmissions 2. Calculate total Attributed direct emission

  4. Apply correction of waste gas export Totalattributeddirectemissions=Totaldirectemissionoftheinstallation+Deduction for waste gasses Note: While calculating the direct emissions we have calculated the entire share of waste gasses emissions. But a part of the waste gasses was actually transferred to the power plant. Powerplant will then combust these waste gasses and the emissions happen at the powerplant Though the emissions of the waste gasses physically happened at the powerplant, share of this waste gas emission is attributed to the steel production and share is attributed to the powerplant Hence we need to apply a the waste gasses correction to the total emissions

  5. SEEi.eSpecific embeddedemissions arefurther usedto calculatethe Taxprice orthe amountforwhich youneed tobuy certificates.We havebuilt softwareto makethis processeasy for you. If youneed any further clarificationor understanding, feelto reach out to me at nb@thinksmartin.com or find more details on https://cleancarbon.ai/cbam/

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