LegalizeCommission Implementing Regulation (EU) 2023/1773 of 17 August 2023 laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period (Text with EEA relevance)
COMMISSION IMPLEMENTING REGULATION (EU) 2023/1773 of 17 August 2023 laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period (Text with EEA relevance)
CHAPTER I
SUBJECT MATTER AND DEFINITIONS
Article 1
Subject matter
This Regulation lays down rules for reporting obligations laid down in Article 35 of Regulation (EU) 2023/956 in respect of goods listed in Annex I to that Regulation imported into the customs territory of the Union during the transitional period from 1 October 2023 to 31 December 2025 (‘transitional period’).
Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:
(1) ‘reporting declarant’ means any of the following persons: (a) the importer who lodges a customs declaration for release for free circulation of goods in its own name and on its own behalf; (b) the person, holding an authorisation to lodge a customs declaration referred to in Article 182(1) of Regulation (EU) No 952/2013 of the European Parliament and of the Council (1), who declares the importation of goods; (c) the indirect customs representative, where the customs declaration is lodged by the indirect customs representative appointed in accordance with Article 18 of Regulation (EU) No 952/2013, when the importer is established outside the Union or where the indirect customs representative has agreed to the reporting obligations in accordance with Article 32 of Regulation (EU) 2023/956;
(2) ‘rebate’ means any amount that reduces the amount due or paid by a person liable for the payment of a carbon price, before its payment or after, in a monetary form or in any other form.
CHAPTER II
RIGHTS AND OBLIGATIONS OF REPORTING DECLARANTS RELATED TO REPORTING
Article 3
Reporting obligations of reporting declarants
Each reporting declarant shall provide, based on the data, that the operator may communicate, as provided in Annex III to this Regulation, the following information regarding goods listed in Annex I to Regulation (EU) 2023/956 imported during the quarter to which the CBAM report relates:
(a) the quantity of the goods imported, expressed in megawatt hours for electricity and in tonnes for other goods;
(b) the type of goods as identified by their CN code.
Each reporting declarant shall provide the following information regarding the embedded emissions of the goods listed in Annex I to Regulation (EU) 2023/956, as listed in Annex I to this Regulation, in the CBAM reports:
(a) the country of origin of the imported goods;
(b) the installation where the goods were produced, identified by the following data: (1) the applicable United Nations Code for Trade and Transport Location (UN/LOCODE) of the location; (2) the company name of the installation, the address of the installation and its English transcript; (3) geographical coordinates of the main emission source of the installation;
(c) the production routes used, defined in Section 3 of Annex II to this Regulation, which shall reflect the technology used for the production of the goods, and information on specific parameters qualifying the indicated production route chosen as defined in Section 2 of Annex IV, for determining the embedded direct emissions;
(d) the specific embedded direct emissions of the goods, which shall be determined by converting the attributed direct emissions of the production processes into emissions specific of the goods expressed as CO2e per tonne in accordance with Sections F and G of Annex III to this Regulation;
(e) the reporting requirements that have an effect on the embedded emissions of the goods as referred to in Section 2 of Annex IV to this Regulation;
(f) for electricity as imported goods, the reporting declarant shall report the following information: (1) the emission factor used for electricity, expressed as tonne CO2e per MWh (megawatt hour) as determined in accordance with Section D of Annex III to this Regulation; (2) the data source or method used for determining the emission factor of electricity as determined in accordance with Section D of Annex III to this Regulation;
(g) for steel goods, the identification number of the specific steel mill where a particular batch of raw materials was produced, where known.
For specific embedded indirect emissions, each reporting declarant shall report the following information, as listed in Annex I to this Regulation, in the CBAM reports:
(a) electricity consumption, expressed in megawatt hours, of the production process per tonne of goods produced;
(b) specify whether the declarant reports actual emissions or default values made available and published by the Commission for the transitional period in accordance with Section D of Annex III to this Regulation;
(c) the corresponding emissions factor of the electricity consumed;
(d) the amount of specific embedded indirect emissions, which shall be determined by converting the attributed embedded indirect emissions of the production processes into indirect emissions specific of the goods expressed as CO2e per tonne in accordance with Sections F and G of Annex III to this Regulation.
Article 4
Calculation of embedded emissions
For the purpose of Article 3(2), the specific embedded emissions of goods produced in an installation shall be determined using one of the following methods, which are based on the choice of monitoring methodology determined in accordance with point B.2 of Annex III to this Regulation, consisting of either:
(a) determining emissions from source streams on the basis of activity data obtained by means of measurement systems and calculation factors from laboratory analyses or standard values;
(b) determining emissions from emission sources by means of continuous measurement of the concentration of the relevant greenhouse gas in the flue gas and of the flue gas flow.
By way of derogation from paragraph 1, until 31 December 2024, the specific embedded emissions of goods produced in an installation may be determined using one of the following monitoring and reporting methods, if they lead to similar coverage and accuracy of emissions data compared to the methods listed in that paragraph:
(a) a carbon pricing scheme where the installation is located; or
(b) a compulsory emission monitoring scheme where the installation is located; or
(c) an emission monitoring scheme at the installation which can include verification by an accredited verifier.
Article 5
Use of estimated values
By way of derogation from Article 4, up to 20 % of the total embedded emissions of complex goods may be based on estimations made available by the operators of the installations.
Article 6
Data collection and reporting regarding inward processing
For goods placed under inward processing and subsequently released for free circulation either as the same goods or as processed products, the reporting declarant shall submit in the CBAM reports, for the quarter following the quarter where the discharge from customs procedure occurred in accordance with Article 257 of Regulation (EU) No 952/2013, the following information:
(a) the quantities of goods listed in Annex I to Regulation (EU) 2023/956 that have been released for free circulation following inward processing during that period;
(b) embedded emissions corresponding to those quantities of goods referred to in point (a) that have been released for free circulation following inward processing during that period;
(c) the country of origin of the goods referred to in point (a), where known;
(d) the installations where the goods referred to in point (a) were produced, where known;
(e) the quantities of goods listed in Annex I to Regulation (EU) 2023/956 placed under inward processing that resulted in processed products that have been released for free circulation during that period;
(f) embedded emissions corresponding to the goods that have been used to produce the quantities of processed products referred to in point (e);
(g) in case of waiver for the bill of discharge granted by customs in accordance with Article 175 of Commission Delegated Regulation (EU) 2015/2446 (2) the reporting declarant shall submit the waiver.
The embedded emissions referred to in the first subparagraph shall be calculated as follows:
(a) the embedded emissions of paragraph 2, point (b), shall be the total embedded emissions of the goods placed under inward processing that are imported; and
(b) the embedded emissions of paragraph 2, point (f), shall be the total embedded emissions of the goods placed under inward processing that were used in one or more processing operations multiplied by the percentage quantities of the processed products obtained therefrom that are imported.
Article 7
Reporting of information regarding the carbon price due
Where applicable, the reporting declarant shall provide in the CBAM reports the following information regarding the carbon price due in a country of origin for the embedded emissions:
(a) the type of product indicated by CN code;
(b) the type of carbon price;
(c) the country, where a carbon price is due;
(d) form of rebate or any other form of compensation available in that country that would have resulted in a reduction of that carbon price;
(e) the amount of the carbon price due, a description of the carbon pricing instrument and possible compensation mechanisms;
(f) indication of the provision of the legal act providing for the carbon price, rebate, or other forms of relevant compensation, including a copy of the legal act;
(g) the quantity of embedded direct or indirect emissions covered;
(h) the quantity of embedded emissions covered by any rebate or other form of compensation, including free allocations, if applicable.
Article 8
Submission of CBAM reports
In the CBAM Transitional Registry the reporting declarant shall provide information and indicate, whether:
(a) the CBAM report is submitted by an importer in its own name and on its own behalf;
(b) the CBAM report is submitted by an indirect customs representative on behalf of an importer.
Article 9
Modification and correction of CBAM reports
CHAPTER III
ADMINISTRATION REGARDING CBAM REPORTING
Article 10
CBAM Transitional Registry
Article 11
Checks of CBAM reports and use of information by the Commission
Article 12
Indicative assessment by the Commission
Article 13
Incomplete or incorrect CBAM reports
A CBAM report shall be considered incorrect in any of the following cases:
(a) the data or information in the submitted report do not comply with the requirements laid down in Articles 3 to 7 and Annex III to this Regulation;
(b) the reporting declarant has submitted wrongful data and information;
(c) where the reporting declarant does not provide an adequate justification for the use of reporting rules other than those listed in Annex III to this Regulation.
Article 14
Assessment of CBAM reports and use of information by the competent authorities
Within the transitional period or thereafter, the competent authorities may initiate the correction procedure regarding any of the following:
(a) incomplete or incorrect CBAM reports;
(b) failure to submit a CBAM report.
Article 15
Confidentiality
By way of derogation from the first subparagraph, such information may be disclosed without permission where this Regulation provides for it and where the competent authority is obliged or authorised to disclose it by virtue of Union or national law.
CHAPTER IV
ENFORCEMENT
Article 16
Penalties
Member States shall apply penalties in the following cases:
(a) where the reporting declarant has not taken the necessary steps to comply with the obligation to submit a CBAM report; or
(b) where the CBAM report is incorrect or incomplete in accordance with Article 13, and the reporting declarant has not taken the necessary steps to correct the CBAM report where the competent authority initiated the correction procedure in accordance with Article 14(4).
When determining the actual amount of a penalty, for the unreported emissions calculated on the basis of the default values made available and published by the Commission for the transitional period, the competent authorities shall consider the following factors:
(a) the extent of unreported information;
(b) the unreported quantities of imported goods and the unreported emissions relating to those goods;
(c) the readiness of the reporting declarant to comply with requests for information or to correct the CBAM report;
(d) the intentional or negligent behaviour of the reporting declarant;
(e) the past behaviour of the reporting declarant as regards compliance with the reporting obligations;
(f) the level of cooperation of the reporting declarant to bring the infringement to an end;
(g) whether the reporting declarant has voluntarily taken measures to ensure that similar infringements cannot be committed in the future.
CHAPTER V
TECHNICAL ELEMENTS REGARDING THE CBAM TRANSITIONAL REGISTRY
SECTION 1
Introduction
Article 17
Central system in scope
The CBAM Transitional Registry shall be interoperable with:
(a) the Uniform User Management and Digital Signature (UUM&DS) system for the purposes of users registration and access management for the Commission, Member States, and reporting declarants, as referred to in Article 16 of Implementing Regulation (EU) 2023/1070;
(b) the Economic Operator Registration and Identification (EORI) for the purpose of validating and retrieving the Economic Operator Identity Information, as referred to in Article 30 of Implementing Regulation (EU) 2023/1070, for the data laid out Annex V to this Regulation;
(c) the Surveillance system for the purpose of retrieving information on Customs Imports Declarations for goods listed in Annex I to Regulation (EU) 2023/956 for checks of the CBAM reports and compliance, developed through the UCC Surveillance 3 (SURV3), as referred to in Article 99 of Implementing Regulation (EU) 2023/1070;
(d) the TARIC System as referred to in Regulation (EEC) No 2658/87.
Article 18
Contact points for the electronic systems
The Commission and Member States shall designate contact points for each of the electronic systems referred to in Article 17 of this Regulation, for the purposes of exchanging information to ensure a coordinated development, operation, and maintenance of those electronic systems.
The Commission and Member States shall communicate the details of these contact points to each other and inform each other immediately of any changes to those details.
SECTION 2
CBAM Transitional Registry
Article 19
Structure of the CBAM Transitional Registry
The CBAM Transitional Registry shall consist of the following common components (‘common components’):
(a) the CBAM Trader Portal (CBAM TP);
(b) the CBAM Competent Authorities Portal (CBAM CAP) with two segregated spaces: (1) one for the National Competent Authorities (CBAM CAP/N); and (2) another for the Commission (CBAM CAP/C);
(c) the CBAM User Access Management;
(d) the CBAM Registry Back End Services (CBAM BE);
(e) the public CBAM page on the Europa website.
Article 20
Terms of collaboration in the CBAM Transitional Registry
Article 21
The CBAM User Access Management
Article 22
CBAM Trader Portal
The CBAM Trader Portal shall be used by the reporting declarant for:
(a) the submission of the CBAM reports via a web interface or a System-to-System interface; and
(b) receiving notifications related to their CBAM compliance obligations.
Article 23
CBAM Competent Authorities Portal (CBAM CAP) for the CBAM National Competent Authorities (CBAM CAP/N)
Article 24
CBAM Competent Authorities Portal (CBAM CAP) for the Commission (CBAM CAP/C)
Article 25
The CBAM Registry Back End Services (CBAM BE)
The CBAM Registry Back End Services shall serve all requests placed by:
(a) the reporting declarants via the CBAM Trader Portal;
(b) the competent authorities via the CBAM Competent Authority Portal/N;
(c) the Commission via the CBAM Competent Authority Portal/C.
Article 26
Access management system
The Commission shall set up the access management system to validate the access requests submitted by reporting declarants and other persons within the UUM&DS system as referred to in Article 17(1), point (a) by connecting the Member States’ identity and the EU identity and access management systems pursuant to Article 27.
Article 27
Administration management system
The Commission shall set up the administration management system to manage the authentication and authorisation, the identification data of reporting declarants and other persons for the purposes of allowing access to the electronic systems.
Article 28
Member States’ identity and access management systems
The Member States shall set up or use existing an identity and access management systems to ensure:
(a) a secure registration and storage of identification data of reporting declarants and other persons;
(b) a secure exchange of signed and encrypted identification data of reporting declarants and other persons.
SECTION 3
Functioning of the electronic systems and training in the use thereof
Article 29
Development, testing, deployment, and management of the electronic systems
Article 30
Maintenance and changes to the electronic systems
Article 31
Temporary failure of the electronic systems
Article 32
Training support on the use and functioning of the common components
The Commission shall support the Member States on the use and functioning of the common components of the electronic systems by providing the appropriate training material.
SECTION 4
Data protection, data management and the ownership and security of the electronic systems
Article 33
Personal data protection
The personal data registered in the CBAM Transitional Registry, and the components of electronic systems developed at national level shall be processed for the purposes of implementing the Regulation (EU) 2023/956 having regard to the specific objectives of those databases as set out in this Regulation. The purposes for which the personal data could be processed shall be the following:
(a) authentication purposes and access management;
(b) monitoring, checks and review of CBAM reports;
(c) communication and notifications;
(d) compliance and judicial proceedings;
(e) functioning of the IT infrastructure, including interoperability with decentralised systems under this Regulation;
(f) statistics and review of the functioning of Regulation (EU) 2023/956 and this Regulation.
Article 34
Limitation of data access and data processing
Article 35
System ownership
The Commission shall be the system owner of the CBAM Transitional Registry.
Article 36
System security
For those purposes, the Commission and Member States shall take the necessary measures to:
(a) prevent any unauthorised person from having access to installations used for the processing of data;
(b) prevent the entry of data and any consultation, modification, or deletion of data by unauthorised persons;
(c) detect any of the activities referred to in points (a) and (b).
Article 37
Controller for the CBAM Transitional Registry
For the CBAM Transitional Registry and in relation to the processing of personal data, the Commission and Member States shall act as joint controllers as defined in Article 4, point (7), of Regulation (EU) 2016/679 and as defined in Article 3, point (8) of Regulation (EU) 2018/1725.
Article 38
Data retention period
Article 39
Assessment of the electronic systems
The Commission and the Member States shall conduct assessments of the components they are responsible for and shall, in particular, analyse the security and integrity of those components and the confidentiality of the data processed within those components.
The Commission and the Member States shall inform each other of the results of those assessments.
Article 40
Entry into force
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
ANNEX I
The reporting declarant shall follow the CBAM report structure listed in Table 1 of this Annex and provided in the CBAM Transitional Registry, and include the detailed information listed in Table 2 of this Annex, when submitting the CBAM report.
| CBAM Report |
|---|
| Report issue date |
| Draft report ID |
| Report ID |
| Reporting period |
| Year |
| -- Reporting declarant |
| ---- Address |
| -- Representative (*1) |
| ---- Address |
| -- Importer (*1) |
| ---- Address |
| -- Competent authority |
| -- Signatures |
| ---- Report confirmation |
| ---- Type of applicable reporting methodology |
| -- Remarks |
| -- CBAM goods imported |
| Goods item number |
| ---- Representative (*1) |
| ------ Address |
| ---- Importer (*1) |
| ------ Address |
| ---- Commodity code |
| Harmonized system sub-heading code |
| Combined nomenclature code |
| ------ Commodity details |
| ---- Country of origin |
| ---- Imported quantity per customs procedure |
| ------ Procedure |
| -------- Inward processing information |
| ------ Area of import |
| ------ Goods measure (per procedure) |
| ------ Goods measure (inward processing) |
| ------ Special references for goods |
| ---- Goods measure (imported) |
| ---- Goods imported total emissions |
| ---- Supporting documents (for goods) |
| ------ Attachments |
| ---- Remarks |
| ---- CBAM goods’ emissions |
| Emissions sequence number |
| Country of production |
| ------ The company name of the installation |
| -------- Address |
| -------- Contact details |
| ------ Installation |
| -------- Address |
| ------ Goods measure (produced) |
| ------ Installation emissions |
| ------ Direct embedded emissions |
| ------ Indirect embedded emissions |
| ------ Production method & qualifying parameters |
| -------- Direct emissions qualifying parameters |
| -------- Indirect emissions qualifying parameters |
| ------ Supporting documents (for emissions definition) |
| -------- Attachments |
| ------ Carbon price due |
| -------- Goods covered under carbon price due |
| ---------- Goods measure (covered) |
| ------ Remarks |
| (1) Note:* Representatives/importers shall be registered either at CBAM report level or at the CBAM goods imported level, which shall depend on whether the same or different representatives/importers are related to CBAM goods imported. |
| CBAM Report |
|---|
| Report issue date |
| Draft report ID |
| Report ID |
| Reporting period |
| Year |
| Total goods imported |
| Total emissions |
| -- Reporting declarant |
| Identification number |
| Name |
| Role |
| ---- Address |
| Member State of establishment |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| -- Representative (*1) |
| Identification number |
| Name |
| ---- Address |
| Member State of establishment |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| -- Importer (*1) |
| Identification number |
| Name |
| ---- Address |
| Member State or country of establishment |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| -- Competent authority |
| Reference number |
| -- Signatures |
| ---- Report confirmation |
| Report global data confirmation |
| Use of data confirmation |
| Date of signature |
| Place of signature |
| Signature |
| Position of person signing |
| ---- Type of applicable reporting methodology |
| Other applicable reporting methodology |
| -- Remarks |
| Additional information |
| -- CBAM goods imported |
| Goods item number |
| ---- Representative (*1) |
| Identification number |
| Name |
| ------ Address |
| Member State of establishment |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| ---- Importer (*1) |
| Identification number |
| Name |
| ------ Address |
| Member State or country of establishment |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| ---- Commodity code |
| Harmonized system sub-heading code |
| Combined nomenclature code |
| ------ Commodity details |
| Description of goods |
| ---- Country of origin |
| Country code |
| ----- Imported quantity per customs procedure |
| Sequence number |
| ------ Procedure |
| Requested procedure |
| Previous procedure |
| Inward processing information |
| Member State of inward processing authorisation |
| Inward processing waiver for bill of discharge |
| Authorisation |
| Globalisation time start |
| Globalisation time end |
| Deadline for submission of bill of discharge |
| ------ Area of import |
| Area of import |
| ------ Goods measure (per procedure) |
| Net mass |
| Supplementary units |
| Type of measurement unit |
| ------ Goods measure (inward processing) |
| Net mass |
| Supplementary units |
| Type of measurement unit |
| ------ Special references for goods |
| Additional information |
| ---- Goods measure (imported) |
| Net mass |
| Supplementary units |
| Type of measurement unit |
| ---- Goods imported total emissions |
| Goods emissions per unit of product |
| Goods total emissions |
| Goods direct emissions |
| Goods indirect emissions |
| Type of measurement unit for emissions |
| ---- Supporting documents (for goods) |
| Sequence number |
| Type |
| Country of document issuance |
| Reference number |
| Document line item number |
| Issuing authority name |
| Validity start date |
| Validity end date |
| Description |
| ------ Attachments |
| Filename |
| Universal Resource Identified |
| Multipurpose Internet Mail Extensions |
| Included binary object |
| ---- Remarks |
| Additional information |
| ---- CBAM goods’ emissions |
| Emissions sequence number |
| Country of production |
| ------ The company name of the installation |
| Operator ID |
| Operator name |
| -------- Address |
| Country code |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| -------- Contact details |
| Name |
| Phone number |
| ------ Installation |
| Installation ID |
| Installation name |
| Economic activity |
| -------- Address |
| Country of establishment |
| Sub-division |
| City |
| Street |
| Street additional line |
| Number |
| Postcode |
| P.O. Box |
| Plot or parcel number |
| UNLOCODE |
| Latitude |
| Longitude |
| Type of coordinates |
| ------ Goods measure (produced) |
| Net mass |
| Supplementary units |
| Type of measurement unit |
| ------ Installation emissions |
| Installation total emissions |
| Installation direct emissions |
| Installation indirect emissions |
| Type of measurement unit for emissions |
| ------ Direct embedded emissions |
| Type of determination |
| Type of determination (electricity) |
| Type of applicable reporting methodology |
| Applicable reporting methodology |
| Specific (direct) embedded emissions |
| Other source indication |
| Source of emission factor (for electricity) |
| Emission factor |
| Electricity imported |
| Total embedded emissions of electricity imported |
| Type of measurement unit |
| Source of emissions factor value |
| Justification |
| Fulfilment of conditionality |
| ------ Indirect embedded emissions |
| Type of determination |
| Source of emission factor |
| Emission factor |
| Specific (indirect) embedded emissions |
| Type of measurement unit |
| Electricity consumed |
| Source of electricity |
| Source of emissions factor value |
| ------ Production method & qualifying parameters |
| Sequence number |
| Method ID |
| Method name |
| Identification number of the specific steel mill |
| Additional Information |
| -------- Direct emissions qualifying parameters |
| Sequence number |
| Parameter ID |
| Parameter name |
| Description |
| Type of parameter value |
| Parameter value |
| Additional information |
| -------- Indirect emissions qualifying parameters |
| Sequence number |
| Parameter ID |
| Parameter name |
| Description |
| Type of parameter value |
| Parameter value |
| Additional information |
| ------ Supporting documents (for emissions definition) |
| Sequence number |
| Type of emissions document |
| Country of document issuance |
| Reference number |
| Document line item number |
| Issuing authority name |
| Validity start date |
| Validity end date |
| Description |
| -------- Attachments |
| Filename |
| Universal Resource Identified |
| Multipurpose Internet Mail Extensions |
| Included binary object |
| ------ Carbon price due |
| Sequence number |
| Type of instrument |
| Description and indication of legal act |
| Amount of carbon price due |
| Currency |
| Exchange rate |
| Amount (EURO) |
| Country code |
| -------- Goods covered under carbon price due |
| Sequence number |
| Type of goods covered |
| CN code of goods covered |
| Quantity of emissions covered |
| Quantity covered by free allocations, any rebate or other form of compensation |
| Supplementary information |
| Additional information |
| ---------- Goods measure (covered) |
| Net mass |
| Supplementary units |
| Type of measurement unit |
| ------ Remarks |
| Sequence number |
| Additional Information |
| (1) Note:* Representatives/importers shall be registered either at CBAM report level or at the CBAM goods imported level, which shall depend on whether the same or different representatives/importers are related to CBAM goods imported. |
ANNEX II
1. DEFINITIONS
For the purpose of this Annex and of Annexes III, IV and VIII to IX the following definitions shall apply:
(0) ‘activity data’ means the amount of fuels or materials consumed or produced by a process relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes or (for gases) volume in normal cubic metres, as appropriate;
(1) ‘activity level’ means the quantity of goods produced (expressed in MWh for electricity, or in tonnes for other goods) within the boundaries of a production process;
(2) ‘reporting period’ means a period that the operator of an installation has chosen to use as reference for the determination of embedded emissions;
(3) ‘source stream’ means any of the following: (a) a specific fuel type, raw material or product giving rise to emissions of relevant greenhouse gases at one or more emission sources as a result of its consumption or production; (b) a specific fuel type, raw material or product containing carbon and included in the calculation of greenhouse gas emissions using a mass balance method;
(4) ‘emission source’ means a separately identifiable part of an installation or a process within an installation, from which relevant greenhouse gases are emitted;
(5) ‘uncertainty’ means a parameter, associated with the result of the determination of a quantity, that characterises the dispersion of the values that could reasonably be attributed to the particular quantity, including the effects of systematic as well as of random factors, expressed in per cent, and describes a confidence interval around the mean value comprising 95 % of inferred values taking into account any asymmetry of the distribution of values;
(6) ‘calculation factors’ means net calorific value, emission factor, preliminary emission factor, oxidation factor, conversion factor, carbon content or biomass fraction;
(7) ‘combustion emissions’ means greenhouse gas emissions occurring during the exothermic reaction of a fuel with oxygen;
(8) ‘emission factor’ means the average emission rate of a greenhouse gas relative to the activity data of a source stream assuming complete oxidation for combustion and complete conversion for all other chemical reactions;
(9) ‘oxidation factor’ means the ratio of carbon oxidised to CO2 as a consequence ofcombustion to the total carbon contained in the fuel, expressed as a fraction, considering carbon monoxide (CO) emitted to the atmosphere as the molar equivalent amount of CO2;
(10) ‘conversion factor’ means the ratio of carbon emitted as CO2 to the total carbon contained in the source stream before the emitting process takes place, expressed as a fraction, considering CO emitted to the atmosphere as the molar equivalent amount of CO2;
(11) ‘accuracy’ means the closeness of the agreement between the result of a measurement and the true value of the particular quantity or a reference value determined empirically using internationally accepted and traceable calibration materials and standard methods, taking into account both random and systematic factors;
(12) ‘calibration’ means the set of operations, which establishes, under specified conditions, the relations between values indicated by a measuring instrument or measuring system, or values represented by a material measure or a reference material and the corresponding values of a quantity realised by a reference standard;
(13) ‘conservative’ means that a set of assumptions is defined in order to ensure that no under-estimation of reported emissions or over-estimation of production of heat, electricity or goods occurs;
(14) ‘biomass’ means the biodegradable fraction of products, waste and residues from biological origin from agriculture, including vegetal and animal substances, from forestry and related industries, including fisheries and aquaculture, as well as the biodegradable fraction of waste, including industrial and municipal waste of biological origin;
(15) ‘waste’ means any substance or object which the holder discards or intends or is required to discard, excluding substances that have been intentionally modified or contaminated in order to meet this definition;
(16) ‘residue’ means a substance that is not the end product(s) that a production process directly seeks to produce; it is not a primary aim of the production process and the process has not been deliberately modified to produce it;
(17) ‘agricultural, aquaculture, fisheries and forestry residues’ means residues that are directly generated by agriculture, aquaculture, fisheries and forestry and that do not include residues from related industries or processing;
(18) ‘legal metrological control’ means the control by a public authority or regulator of the measurement tasks intended for the field of application of a measuring instrument, for reasons of public interest, public health, public safety, public order, protection of the environment, the levying of taxes and duties, the protection of consumers and fair trading;
(19) ‘data flow activities’ mean activities related to the acquisition, processing and handling of data that are needed to draft an emissions report from primary source data;
(20) ‘measurement system’ means a complete set of measuring instruments and other equipment, such as sampling and data processing equipment, used to determine variables such as the activity data, the carbon content, the calorific value or the emission factor of the greenhouse gas emissions;
(21) ‘net calorific value’ (NCV) means the specific amount of energy released as heat when a fuel or material undergoes complete combustion with oxygen under standard conditions, less the heat of vaporisation of any water formed;
(22) ‘process emissions’ means greenhouse gas emissions other than combustion emissions occurring as a result of intentional and unintentional reactions between substances or their transformation, for a primary purpose other than the generation of heat, including from the following processes: (a) the chemical, electrolytic or pyrometallurgical reduction of metal compounds in ores, concentrates and secondary materials; (b) the removal of impurities from metals and metal compounds; (c) the decomposition of carbonates, including those used for flue gas cleaning; (d) chemical syntheses of products and intermediate products where the carbon bearing material participates in the reaction; (e) the use of carbon containing additives or raw materials; (f) the chemical or electrolytic reduction of metalloid oxides or non-metal oxides such as silicon oxides and phosphates;
(23) ‘batch’ means an amount of fuel or material representatively sampled and characterised, and transferred as one shipment or continuously over a specific period of time;
(24) ‘mixed fuel’ means a fuel which contains both biomass and fossil carbon;
(25) ‘mixed material’ means a material which contains both biomass and fossil carbon;
(26) ‘preliminary emission factor’ means the assumed total emission factor of a fuel or material based on the carbon content of its biomass fraction and its fossil fraction before multiplying it by the fossil fraction to produce the emission factor;
(27) ‘fossil fraction’ means the ratio of fossil and inorganic carbon to the total carbon content of a fuel or material, expressed as a fraction;
(28) ‘biomass fraction’ means the ratio of carbon stemming from biomass to the total carbon content of a fuel or material, expressed as a fraction;
(29) ‘continuous emission measurement’ means a set of operations having the objective of determining the value of a quantity by means of periodic measurements, applying either measurements in the stack or extractive procedures with a measuring instrument located close to the stack, whilst excluding measurement methodologies based on the collection of individual samples from the stack;
(30) ‘inherent CO2’ means CO2 which is part of a source stream;
(31) ‘fossil carbon’ means inorganic and organic carbon that is not biomass;
(32) ‘measurement point’ means the emission source for which continuous emission measurement systems (CEMS) are used for emission measurement, or the cross-section of a pipeline system for which the CO2 flow is determined using continuous measurement systems;
(33) ‘fugitive emissions’ means irregular or unintended emissions from sources that are not localised, or too diverse or too small to be monitored individually;
(34) ‘standard conditions’ means temperature of 273,15 K and pressure conditions of 101 325 Pa defining normal cubic metres (Nm3);
(35) ‘proxy data’ means annual values which are empirically substantiated or derived from accepted sources and which an operator uses to substitute a data set for the purpose of ensuring complete reporting when it is not possible to generate all the required data or factors in the applicable monitoring methodology;
(36) ‘measurable heat’ means a net heat flow transported through identifiable pipelines or ducts using a heat transfer medium, such as, in particular, steam, hot air, water, oil, liquid metals and salts, for which a heat meter is or could be installed;
(37) ‘heat meter’ means a thermal energy meter or any other device to measure and record the amount of thermal energy produced based upon flow volumes and temperatures;
(38) ‘non-measurable heat’ means all heat other than measurable heat;
(39) ‘waste gas’ means a gas containing incompletely oxidised carbon in a gaseous state under standard conditions which is a result of any of the processes listed in point (22);
(40) ‘production process’ means the chemical or physical processes carried out in parts of an installation to produce goods under an aggregated goods category defined in Table 1 of Section 2 of this Annex, and its specified system boundaries regarding inputs, outputs and corresponding emissions;
(41) ‘production route’ means a specific technology used in a production process to produce goods under an aggregated goods category;
(42) ‘data set’ means one type of data, either at installation level or production process level as relevant in the circumstances, as any of the following: (a) the amount of fuels or materials consumed or produced by a production process as relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes, or for gases as volume in normal cubic metres, as appropriate, including for waste gases; (b) a calculation factor; (c) net quantity of measurable heat, and the relevant parameters required for determining this quantity, in particular: — mass flow of heat transfer medium, and — enthalpy of transmitted and returned heat transfer medium, as specified by composition, temperature, pressure and saturation; (d) quantities of non-measurable heat, specified by the relevant quantities of fuels used for producing the heat, and the net calorific value (NCV) of the fuel mix; (e) quantities of electricity; (f) quantities of CO2 transferred between installations; (g) quantities of precursors received from outside the installation, and their relevant parameters, such as country of origin, used production route, specific direct and indirect emissions, carbon price due; (h) parameters relevant for a carbon price due;
(43) ‘minimum requirements’ means monitoring methods using the minimum efforts allowed for determining data in order to result in emission data acceptable for the purpose of Regulation (EU) 2023/956;
(44) ‘recommended improvements’ means monitoring methods which are proven means to ensure that data are more accurate or less prone to mistakes than by mere application of minimum requirements, and which may be chosen on a voluntary basis;
(45) ‘misstatement’ means an omission, misrepresentation or error in the operator’s reported data, not considering the uncertainty permissible for measurements and laboratory analyses;
(46) ‘material misstatement’ means a misstatement that, in the opinion of the verifier, individually or when aggregated with other misstatements, exceeds the materiality level or could affect the treatment of the operator’s report by the competent authority;
(47) ‘reasonable assurance’ means a high but not absolute level of assurance, expressed positively in the verification opinion, as to whether the operator’s report subject to verification is free from material misstatement;
(48) ‘eligible monitoring, reporting and verification system’ means the monitoring, reporting and verification systems where the installation is established for the purpose of a carbon pricing scheme, or compulsory emission monitoring schemes, or an emission monitoring scheme at the installation which can include verification by an accredited verifier, in accordance with Article 4(2) of this Regulation.
2. MAPPING OF CN CODES TO AGGREGATED GOODS CATEGORIES
Table 1 of this Annex defines aggregated goods categories for each CN code listed in Annex I to Regulation (EU) 2023/956. Those categories are used for the purpose of defining system boundaries of production processes for the determination of embedded emissions corresponding to the goods listed in Annex I to Regulation (EU) 2023/956.
| CN code | Aggregated goods category | Greenhouse gas |
|---|---|---|
| Cement | ||
| 2507 00 80 – Other kaolinic clays | Calcined clay | Carbon dioxide |
| 2523 10 00 – Cement clinkers | Cement clinker | Carbon dioxide |
| 2523 21 00 – White Portland cement, whether or not artificially coloured 2523 29 00 – Other Portland cement 2523 90 00 – Other hydraulic cements | Cement | Carbon dioxide |
| 2523 30 00 – Aluminous cement | Aluminous cement | Carbon dioxide |
| Electricity | ||
| 2716 00 00 – Electrical energy | Electricity | Carbon dioxide |
| Fertiliser | ||
| 2808 00 00 – Nitric acid; sulphonitric acids | Nitric acid | Carbon dioxide and nitrous oxide |
| 3102 10 – Urea, whether or not in aqueous solution | Urea | Carbon dioxide |
| 2814 – Ammonia, anhydrous or in aqueous solution | Ammonia | Carbon dioxide |
| 2834 21 00 – Nitrates of potassium 3102 – Mineral or chemical fertilisers, nitrogenous except 3102 10 (Urea) 3105 – Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus, and potassium; other fertilisers — Except: 3105 60 00 – Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium | Mixed fertilisers | Carbon dioxide and nitrous oxide |
| Iron and Steel | ||
| 2601 12 00 – Agglomerated iron ores and concentrates, other than roasted iron pyrites | Sintered Ore | Carbon dioxide |
| 7201 – Pig iron and spiegeleisen in pigs, blocks, or other primary forms Some products under 7205 (Granules and powders, of pig iron, spiegeleisen, iron, or steel) may be covered here | Pig Iron | Carbon dioxide |
| 7202 1 – Ferro-manganese | FeMn | Carbon dioxide |
| 7202 4 – Ferro-chromium | FeCr | Carbon dioxide |
| 7202 6 – Ferro-nickel | FeNi | Carbon dioxide |
| 7203 – Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products | DRI | Carbon dioxide |
| 7206 – Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203 ) 7207 – Semi-finished products of iron or non-alloy steel 7218 – Stainless steel in ingots or other primary forms; semi-finished products of stainless steel 7224 – Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel | Crude steel | Carbon dioxide |
| 7205 – Granules and powders, of pig iron, spiegeleisen, iron or steel (if not covered under category pig iron) 7208 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated 7209 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated 7210 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated 7211 – Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated 7212 – Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated 7213 – Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel 7214 – Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling 7215 – Other bars and rods of iron or non-alloy steel 7216 – Angles, shapes and sections of iron or non-alloy steel 7217 – Wire of iron or non-alloy steel 7219 – Flat-rolled products of stainless steel, of a width of 600 mm or more 7220 – Flat-rolled products of stainless steel, of a width of less than 600 mm 7221 – Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel 7222 – Other bars and rods of stainless steel; angles, shapes and sections of stainless steel 7223 – Wire of stainless steel 7225 – Flat-rolled products of other alloy steel, of a width of 600 mm or more 7226 – Flat-rolled products of other alloy steel, of a width of less than 600 mm 7227 – Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel 7228 – Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel 7229 – Wire of other alloy steel 7301 – Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel 7302 – Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails 7303 – Tubes, pipes and hollow profiles, of cast iron 7304 – Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel 7305 – Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel 7306 – Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel 7307 – Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel 7308 – Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel 7309 – Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7310 – Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7311 – Containers for compressed or liquefied gas, of iron or steel 7318 – Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel 7326 – Other articles of iron or steel | Iron or steel products | Carbon dioxide |
| Aluminium | ||
| 7601 – Unwrought aluminium | Unwrought aluminium | Carbon dioxide and perfluorocarbons |
| 7603 – Aluminium powders and flakes 7604 – Aluminium bars, rods and profiles 7605 – Aluminium wire 7606 – Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm 7607 – Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm 7608 – Aluminium tubes and pipes 7609 00 00 – Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) 7610 – Aluminium structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures 7611 00 00 – Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7612 – Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7613 00 00 – Aluminium containers for compressed or liquefied gas 7614 – Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated 7616 – Other articles of aluminium | Aluminium products | Carbon dioxide and perfluorocarbons |
| Chemicals | ||
| 2804 10 000 – Hydrogen | Hydrogen | Carbon dioxide |
3. PRODUCTION ROUTES, SYSTEM BOUNDARIES AND RELEVANT PRECURSORS
3.1. Cross-sectoral rules
For determining the activity level (quantity produced) of the goods, which is used as denominator in Equations 50 and 51 (Section F.1 of Annex III), the monitoring rules of Section F.2 of Annex III shall apply.
Where several production routes are used in the same installation for producing goods falling under the same CN code, and where those production routes are assigned separate production processes, the embedded emissions of those goods shall be calculated separately for each production route.
For the monitoring of direct emissions, all emission sources and source streams associated with the production process shall be monitored, taking into account specific requirements laid down in Sections 3.2 to 3.19 of this Annex, where relevant, and the rules laid down in Annex III.
Where CO2 capture is used, the rules of Section B.8.2 of Annex III shall apply.
For the monitoring of indirect emissions, the total electricity consumption of each production process shall be determined, within the system boundaries defined in line with Sections 3.2 to 3.19 of this Annex and in accordance with Section A.4 of Annex III, where relevant. The relevant emission factor of electricity shall be determined in accordance with Section D.2 of Annex III.
If relevant precursors are specified, they refer to the corresponding aggregated goods categories.
3.2. Calcined clay
Clays falling under CN code 2507 00 80 which are not calcined, are assigned embedded emissions of zero. They shall be included in the CBAM report, but no additional information from the producer of the clay is required. The following provisions relate only to clays falling under that CN code and that are calcined.
For calcined clay, direct emissions monitoring shall encompass:
— All processes directly or indirectly linked to the production processes, such as raw material preparation, mixing, drying, and calcining, and flue gas cleaning.
— CO2 emissions from the combustion of fuels as well as from raw materials, where relevant.
Relevant precursors: none.
3.3. Cement clinker
No distinction shall be made between grey and white cement clinker.
For cement clinker, direct emissions monitoring shall encompass:
— Calcination of limestone and other carbonates in the raw materials, conventional fossil kiln fuels, alternative fossil-based kiln fuels and raw materials, biomass kiln fuels (such as waste-derived fuels), non-kiln fuels, non-carbonate carbon content of limestone and shales, or alternative raw materials such as fly ash used in the raw meal in the kiln and raw materials used for flue gas scrubbing.
— The additional provisions of Section B.9.2 of Annex III shall apply.
Relevant precursors: none.
3.4. Cement
None.
For cement, direct emissions monitoring shall encompass:
— All CO2 emissions from fuel combustion, where relevant for drying of materials.
Relevant precursors:
— Cement clinker;
— Calcined clay, if used in the process.
3.5. Aluminous cement
None.
For aluminous cement, direct emissions monitoring shall encompass:
— All CO2 emissions from fuel combustion directly or indirectly linked to the process.
— Process emissions from carbonates in raw materials, if applicable, and flue gas cleaning.
Relevant precursors: none.
3.6. Hydrogen
Only the production of pure hydrogen or mixtures of hydrogen with nitrogen usable in ammonia production shall be considered. Not covered are the production of synthesis gas or of hydrogen within refineries or organic chemical installations, where hydrogen is exclusively used within those plants and not used for the production of goods listed in Annex I to Regulation (EU) 2023/956.
For those production routes, direct emissions monitoring shall encompass:
— All processes directly or indirectly linked to hydrogen production, and flue gas cleaning.
— All fuels used in the hydrogen production process irrespective of their energetic or non-energetic use, and fuels used for other combustion processes including for the purpose of producing hot water or steam.
Relevant precursors: none.
For that production route, direct emissions monitoring shall encompass, if relevant:
— All emissions from fuel use directly or indirectly linked to the hydrogen production process and from flue gas cleaning.
Indirect emissions: Where the produced hydrogen has been certified to comply with Commission Delegated Regulation (EU) 2023/1184 (3), an emission factor of zero for the electricity may be used. In all other cases, the rules on indirect embedded emissions (Section D of Annex III) shall apply.
Relevant precursors: none.
Attribution of emissions to products: Where the co-produced oxygen is vented, all emissions of the production process shall be attributed to hydrogen. Where by-product oxygen is used in other production processes at the installation or sold, and where direct or indirect emissions are not equal to zero, the emissions of the production process shall be attributed to hydrogen based on molar proportions using the following equation:
Where:
are either the direct or indirect emissions attributed to hydrogen produced over the reporting period, expressed in tonnes of CO2;
Em total are either the direct or indirect emissions of the whole production process over the reporting period, expressed in tonnes of CO2;
is the mass of oxygen sold or used in the installation over the reporting period, expressed in tonnes;
is the mass of oxygen produced over the reporting period, expressed in tonnes;
is the mass of hydrogen produced over the reporting period, expressed in tonnes;
is the molar mass of O2 (31,998 kg/kmol); and
is the molar mass of H2 (2,016 kg/kmol).
For those production routes, direct emissions monitoring shall encompass, if relevant:
— All emissions from fuel use directly or indirectly linked to the hydrogen production process and from flue gas cleaning.
Indirect emissions: Where the produced hydrogen has been certified to comply with Delegated Regulation (EU) 2023/1184, an emission factor of zero for the electricity may be used. In all other cases, the rules on indirect embedded emissions (Section D of Annex III) shall apply.
Relevant precursors: none.
Attribution of emissions to products: As hydrogen is considered a by-product in this production process, only a molar proportion of the overall process shall be attributed to the fraction of hydrogen sold or used as a precursor within the installation. Provided that direct or indirect emissions are not equal to zero, the emissions of the production process shall be attributed to hydrogen used or sold using the following equations:
Chlor-Alkali electrolysis:
Production of Sodium Chlorate:
Where:
are either the direct or indirect emissions attributed to hydrogen sold or used as precursor over the reporting period, expressed in tonnes of CO2;
Em total are either the direct or indirect emissions of the production process over the reporting period, expressed in tonnes of CO2;
is the mass of hydrogen sold or used as precursor over the reporting period, expressed in tonnes;
is the mass of hydrogen produced over the reporting period, expressed in tonnes;
is the mass of chlorine produced over the reporting period, expressed in tonnes;
m NaOH,prod is the mass of sodium hydroxide (caustic soda) produced over the reporting period, expressed in tonnes, calculated as 100 % NaOH;
is the mass of sodium chlorate produced over the reporting period, expressed in tonnes, calculated as 100 % NaClO3;
is the molar mass of H2 (2,016 kg/kmol);
is the molar mass of Cl2 (70,902 kg/kmol);
M NaOH is the molar mass of NaOH (39,997 kg/kmol); and
is the molar mass of NaClO3 (106,438 kg/kmol).
3.7. Ammonia
Both hydrous and anhydrous ammonia shall be reported jointly as 100 % ammonia.
Where CO2 from ammonia production is used as feedstock for the production of urea or other chemicals, point (b) of Section B.8.2 of Annex III shall apply. Where a deduction of CO2 is allowed according to that section and where it would lead to negative specific embedded direct emissions of ammonia, the specific embedded direct emissions of ammonia shall be zero.
For that production route, direct emissions monitoring shall encompass:
— All fuels directly or indirectly linked to ammonia production, and materials used for flue gas cleaning.
— All fuels shall be monitored, irrespective of whether used as energetic or non-energetic input.
— Where biogas is used, the provisions of Section B.3.3 of Annex III shall be applied.
— Where hydrogen from other production routes is added to the process, it shall be treated as a precursor with its own embedded emissions.
Relevant precursors: separately produced hydrogen, if used in the process.
That route applies where hydrogen is produced by gasification of coal, heavy refinery fuels or other fossil feedstock. Input materials may include biomass, for which the provisions of Section B.3.3 of Annex III shall be taken into account.
For that production route, direct emissions monitoring shall encompass:
— All fuels directly or indirectly linked to ammonia production, and materials used for flue gas cleaning.
— Each fuel input shall be monitored as one fuel stream, irrespective of whether it is used as energetic or non-energetic input.
— Where hydrogen from other production routes is added to the process, it shall be treated as a precursor with its own embedded emissions.
Relevant precursors: separately produced hydrogen, if used in the process.
3.8. Nitric acid
Amounts of nitric acid produced shall be monitored and reported as 100 % nitric acid.
For nitric acid, direct emissions monitoring shall encompass:
— CO2 from all fuels directly or indirectly linked to nitric acid production, and materials used for flue gas cleaning;
— N2O emissions from all sources emitting N2O from the production process, including unabated and abated emissions. Any N2O emissions from the combustion of fuels are excluded from monitoring.
Relevant precursors: Ammonia (as 100 % ammonia).
3.9. Urea
Where the CO2 used in the production of urea stems from ammonia production, it is accounted for as subtraction in the embedded emissions of ammonia as precursor of urea, if the provisions of Section 3.7 of this Annex allow such deduction. However, where ammonia produced without direct fossil CO2 emissions is used as a precursor, the used CO2 may be deducted from the direct emissions of the installation producing the CO2, provided that the delegated act adopted pursuant to Article 12(3b) of Directive 2003/87/EC defines urea production as a case where CO2 is permanently chemically bound so that it does not enter the atmosphere under normal use, including any normal activity taking place after the end of the life of the product. Where such deduction would lead to negative specific direct embedded emissions of urea, the specific direct embedded emissions of urea shall be zero.
For urea, direct emissions monitoring shall encompass:
— CO2 from all fuels directly or indirectly linked to urea production, and materials used for flue gas cleaning.
— Where CO2 is received from another installation as process input, the CO2 received and not bound in urea shall be considered an emission, if not already counted as emission of the installation where the CO2 was produced, under an eligible monitoring, reporting and verification system.
Relevant precursors: Ammonia (as 100 % ammonia).
3.10. Mixed fertilisers
This section applies to the production of all kinds of nitrogen containing fertilisers, including ammonium nitrate, calcium ammonium nitrate, ammonium sulphate, ammonium phosphates, urea ammonium nitrate solutions, as well as nitrogen-phosphorus (NP), nitrogen-potassium (NK) and nitrogen-phosphorus-potassium (NPK) fertilisers. All kinds of operations are included such as mixing, neutralisation, granulation, prilling, irrespective of whether only physical mixing or chemical reactions take place.
The amounts of different nitrogen compounds contained in the final product shall be recorded in accordance with Regulation (EU) 2019/1009 of the European Parliament and of the Council (4):
— content of N as ammonium (NH4 +);
— content of N as nitrate (NO3 –);
— content of N as Urea;
— content of N in other (organic) forms.
The direct and indirect emissions of the production processes falling under this aggregated goods category may be determined for the whole reporting period and attributed to all mixed fertilisers on a pro-rata basis per tonne of final product. For each fertiliser grade, embedded emissions shall be calculated separately taking into account the relevant mass of precursors used and applying average embedded emissions during the reporting period for each of the precursors.
For mixed fertilisers, direct emissions monitoring shall encompass:
— CO2 from all fuels directly or indirectly linked to fertiliser production, such as fuels used in driers and for heating input materials, and materials used for flue gas cleaning.
Relevant precursors:
— ammonia (as 100 % ammonia), if used in the process;
— nitric acid (as 100 % nitric acid), if used in the process;
— urea, if used in the process;
— mixed fertilisers (in particular salts containing ammonium or nitrate), if used in the process.
3.11. Sintered ore
This aggregated goods category includes all kinds of iron ore pellet production (for sale of pellets as well as for direct use in the same installation) and sinter production. To the extent covered by CN code 2601 12 00 , also iron ores used as precursors for ferro-chromium (FeCr), ferro-manganese (FeMn) or ferro-nickel (FeNi) may be covered.
For sintered ore, direct emissions monitoring shall encompass:
— CO2 from process materials such as limestone and other carbonates or carbonatic ores;
— CO2 from all fuels including coke, waste gases such as coke oven gas, blast furnace gas or converter gas; directly or indirectly linked to the production process, and materials used for flue gas cleaning.
Relevant precursors: none.
3.12. FeMn (Ferro-Manganese), FeCr (Ferro-Chromium) and FeNi (Ferro-Nickel)
This process covers only the production of the alloys identified under CN codes 7202 1, 7202 4 and 7202 6. Other iron materials with significant alloy content such as spiegeleisen are not covered. NPI (nickel pig iron) is included if the nickel content is greater than 10 %.
Where waste gases or other flue gases are emitted without abatement, CO contained in the waste gas shall be considered as the molar equivalent of CO2 emissions.
For FeMn, FeCr and FeNi, direct emissions monitoring shall encompass:
— CO2 emissions caused by fuel inputs, irrespective of whether they are used for energetic or non-energetic use;
— CO2 emissions from process inputs such as limestone and from flue gas cleaning;
— CO2 emissions from the consumption of electrodes or electrode pastes;
— Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III.
Relevant precursors: Sintered ore, if used in the process.
3.13. Pig iron
This aggregated goods category includes non-alloyed pig iron from blast furnaces as well as alloy-containing pig irons (e.g. spiegeleisen), irrespective of the physical form (e.g. ingots, granules). NPI (nickel pig iron) is included if the nickel content is lower than 10 %. In integrated steel plants, liquid pig iron (‘hot metal’) directly charged to the oxygen converter is the product which separates the production process for pig iron from the production process of crude steel. Where the installation does not sell or transfer pig iron to other installations, there is no need to monitor emissions from pig iron production separately. A common production process including crude steel making and, subject to the rules of Section A.4 of Annex III, further downstream production may be defined.
For that production route, direct emissions monitoring shall encompass:
— CO2 from fuels and reducing agents such as coke, coke dust, coal, fuel oils, plastic wastes, natural gas, wood wastes, charcoal, as well as from waste gases such as coke oven gas, blast furnace gas or converter gas.
— Where biomass is used, the provisions of Section B.3.3 of Annex III shall be taken into account.
— CO2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning.
— Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III.
Relevant precursors:
— sintered ore;
— pig iron or direct reduced iron (DRI) from other installations or production processes, if used in the process;
— FeMn, FeCr, FeNi if used in the process;
— hydrogen if used in the process.
For this production route, direct emissions monitoring shall encompass:
— CO2 from fuels and reducing agents such as coke, coke dust, coal, fuel oils, plastic wastes, natural gas, wood wastes, charcoal, waste gases from the process or converter gas, etc.
— Where biomass is used, the provisions of Section B.3.3 of Annex III shall be taken into account.
— CO2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning.
— Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III.
Relevant precursors:
— sintered ore;
— pig iron or DRI from other installations or production processes, if used in the process;
— FeMn, FeCr, FeNi if used in the process;
— hydrogen if used in the process.
3.14. DRI (Direct Reduced Iron)
There is only one production route defined, although different technologies may use different qualities of ores, which may require pelletisation or sintering, and different reducing agents (natural gas, diverse fossil fuels or biomass, hydrogen). Therefore, precursors sintered ore or hydrogen may be relevant. As products, iron sponge, hot briquetted iron (HBI) or other forms of direct reduced iron may be relevant, including DRI which is immediately fed to electric arc furnaces or other downstream processes.
Where the installation does not sell or transfer DRI to other installations, there is no need to monitor emissions from DRI production separately. A common production process including steel making and, subject to the rules of Section A.4 of Annex III, further downstream production may be used.
For this production route, direct emissions monitoring shall encompass:
— CO2 from fuels and reducing agents such as natural gas, fuel oils, waste gases from the process or converter gas, etc.;
— Where biogas or other forms of biomass are used, the provisions of Section B.3.3 of Annex III shall be taken into account;
— CO2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning;
— Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III.
Relevant precursors:
— sintered ore, if used in the process;
— hydrogen, if used in the process;
— pig iron or DRI from other installations or production processes, if used in the process;
— FeMn, FeCr, FeNi if used in the process.
3.15. Crude steel
The system boundaries shall cover all necessary activities and units for obtaining crude steel:
— If the process starts from hot metal (liquid pig iron), the system boundaries shall include the basic oxygen converter, vacuum degassing, secondary metallurgy, argon oxygen decarburisation/vacuum oxygen decarburisation, continuous casting or ingot casting, where relevant hot-rolling or forging, and all necessary auxiliary activities such as transfers, re-heating and flue gas cleaning;
— If the process uses an electric arc furnace, the system boundaries shall include all relevant activities and units such as the electric arc furnace itself, secondary metallurgy, vacuum degassing, argon oxygen decarburisation/vacuum oxygen decarburisation, continuous casting or ingot casting, where relevant hot-rolling or forging, and all necessary auxiliary activities such as transfers, heating of raw materials and equipment, re-heating and flue gas cleaning;
— Only primary hot-rolling and rough shaping by forging to obtain the semi-finished products under CN codes 7207 , 7218 and 7224 are included in this aggregated goods category. All other rolling and forging processes are included in the aggregated goods category ‘iron or steel products’.
For that production route, direct emissions monitoring shall encompass:
— CO2 from fuels such as coal, natural gas, fuel oils, waste gases such as blast furnace gas, coke oven gas or converter gas, etc.
— CO2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning.
— Carbon entering the process in scrap, alloys, graphite, etc. and carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III.
Relevant precursors:
— pig iron, DRI, if used in the process;
— FeMn, FeCr, FeNi if used in the process;
— crude steel from other installations or production processes if used in the process.
For that production route, direct emissions monitoring shall encompass:
— CO2 from fuels such as coal, natural gas, fuel oils, as well as from waste gases such as blast furnace gas, coke oven gas or converter gas.
— CO2 from the consumption of electrodes and electrode pastes.
— CO2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning.
— Carbon entering the process, e.g. in the form of scrap, alloys and graphite, and carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III.
Relevant precursors:
— pig iron, DRI, if used in the process;
— FeMn, FeCr, FeNi if used in the process;
— crude steel from other installations or production processes if used in the process.
3.16. Iron or steel products
Subject to the rules of Section A.4 of Annex III and Sections 3.11 to 3.15 of this Annex, the production process for iron or steel products may apply to the following cases:
— System boundaries cover as one process all steps of an integrated steel plant from production of pig iron or DRI, crude steel, semi-finished products as well as final steel products under the CN codes listed in Section 2 of this Annex.
— System boundaries cover the production of crude steel, semi-finished products and final steel products under the CN codes listed in Section 2 of this Annex.
— System boundaries cover the production of final steel products under the CN codes listed in Section 2 of this Annex starting from crude steel, semi-finished products or from other final steel products under the CN codes listed in Section 2 which are either received from other installations or produced within the same installation but under a separate production process.
Double counting or gaps in the monitoring of production processes of an installation shall be avoided. The following production steps shall be covered by the production process of ‘iron or steel products’:
— All production steps for producing goods covered by the CN codes given in Section 2 of this Annex for the aggregated goods category ‘iron or steel products’, which are not already covered by separate production processes for pig iron, DRI or crude steel, as required by Sections 3.11 to 3.15 of this Annex and as applied at the installation.
— All production steps applied at the installation, starting from crude steel, including, but not limited to: re-heating, re-melting, casting, hot rolling, cold rolling, forging, pickling, annealing, plating, coating, galvanising, wire drawing, cutting, welding, finishing.
For products that contain more than 5 % by mass of other materials, e.g. insulation materials in CN code 7309 00 30 , only the mass of iron or steel shall be reported as the mass of the goods produced.
For iron or steel products, direct emissions monitoring shall encompass:
— All CO2 emissions from combustion of fuels and process emissions from flue gas treatment, related to production steps applied at the installation, including, but not limited to: re-heating, re-melting, casting, hot rolling, cold rolling, forging, pickling, annealing, plating, coating, galvanising, wire drawing, cutting, welding and finishing of iron or steel products.
Relevant precursors:
— crude steel, if used in the process;
— pig iron, DRI, if used in the process;
— FeMn, FeCr, FeNi, if used in the process;
— iron or steel products, if used in the process.
3.17. Unwrought aluminium
This aggregated goods category includes non-alloyed as well as alloyed aluminium, in physical form typical for unwrought metals, such as ingots, slabs, billets or granules. In integrated aluminium plants, liquid aluminium directly charged to the production of aluminium products is included, too. Where the installation does not sell or transfer unwrought aluminium to other installations, there is no need to monitor emissions from unwrought aluminium production separately. A common production process including unwrought aluminium and, subject to the rules of Section A.4 of Annex III, further processes to produce aluminium products may be defined.
For that production route, direct emissions monitoring shall encompass:
— CO2 emissions from the consumption of electrodes or electrode pastes.
— CO2 emissions from any fuels used (e.g. for drying and pre-heating of raw materials, heating of electrolysis cells, heating required for casting).
— CO2 emissions from any flue gas treatment, from soda ash or limestone if relevant.
— Perfluorocarbon emissions caused by anode effects monitored in accordance with Section B.7 of Annex III.
Relevant precursors: none.
Secondary melting (recycling) of aluminium uses aluminium scrap as main input. However, where unwrought aluminium from other sources is added, it is treated like a precursor. Furthermore, where the product of this process contains more than 5 % alloying elements, the embedded emissions of the product shall be calculated as if the mass of alloying elements were unwrought aluminium from primary smelting.
For that production route, direct emissions monitoring shall encompass:
— CO2 emissions from any fuels used for drying and pre-heating of raw materials, used in melting furnaces, in pre-treatment of scrap such as de-coating and de-oiling, and combustion of the related residues, and fuels required for casting of ingots, billets or slabs;
— CO2 emissions from any fuels used in associated activities such as treatment of skimmings and slag recovery;
— CO2 emissions from any flue gas treatment, from soda ash or limestone if relevant.
Relevant precursors:
— Unwrought aluminium from other sources, if used in the process.
3.18. Aluminium products
Subject to the rules of Section A.4 of Annex III and Section 3.17 of this Annex, the production process for aluminium products may apply to the following cases:
— System boundaries cover as one process all steps of an integrated aluminium plant from production of unwrought aluminium to semi-finished products as well as aluminium products under the CN codes listed in Section 2 of this Annex.
— System boundaries cover the production of aluminium products under the CN codes listed in Section 2 of this Annex starting from semi-finished products or from other aluminium products under the CN codes listed in Section 2 which are either received from other installations or produced within the same installation but under a separate production process.
Double counting or gaps in the monitoring of production processes of an installation shall be avoided. The following production steps shall be covered by the production process of ‘aluminium products’:
— All production steps for producing goods covered by the CN codes given in Section 2 of this Annex for the aggregated goods category ‘aluminium products’, which are not already covered by separate production processes for unwrought aluminium, as required by Section 3.17 of this Annex and as applied at the installation.
— All production steps applied at the installation, starting from unwrought aluminium, including, but not limited to: re-heating, re-melting, casting, rolling, extruding, forging, coating, galvanising, wire drawing, cutting, welding, finishing.
Where the product contains more than 5 % by mass alloying elements, the embedded emissions of the product are shall be calculated as if the mass of alloying elements were unwrought aluminium from primary smelting.
For products that contain more than 5 % by mass of other materials, e.g. insulation materials in CN code 7611 00 00 only the mass of aluminum shall be reported as the mass of the goods produced.
For aluminium products, direct emissions monitoring shall encompass:
— All CO2 emissions from fuel consumption in processes forming aluminium products, and flue gas cleaning.
Relevant precursors:
— unwrought aluminium, if used in the production process (treat primary and secondary aluminium separately, if data is known);
— aluminium products, if used in the production process.
3.19. Electricity
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