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How to calculate Specific Embedded Emissions (SEE) in the CBAM Module

This article guides you through the process of calculating the Specific Embedded Emissions (SEE) of your goods within the CBAM module.

Oanh avatar
Written by Oanh
Updated over a week ago

1. Before SEE Calculation

Before proceeding with SEE calculations, ensure you have successfully completed the following foundational steps within the operator module:

  • Administrative Information which refers to your operator's administrative details

  • Installation Details which refers to all relevant information pertaining to your installations

  • CBAM Goods Declaration, you have either:

    • Precisely listed all CBAM goods you produce.

    • Verified that all CBAM goods declared by the importer accurately correspond to your production.

  • Production Process Identification: You have clearly identified the installations and the specific production processes associated with each of your CBAM goods.

Upon completion of these prerequisites, a recap table will become available, presenting all calculated Specific Embedded Emissions (SEE) categorized by:

  • Aggregated category of the good

  • Production process of the good

  • Installation where the good is produced

You can now initiate the SEE calculation for your chosen CBAM good by clicking the "Calculate SEE" button.

2. Calculate your SEE

Below you'll find the guide step by step of the SEE calculation process:

Step 1: Declare production tonnages of this CBAM good produced in this installation & of all goods produced in this installation (CBAM or non CBAM good)

This step establishes the basis for attributing emissions, particularly for data collected at the installation level.

Purpose: Certain data, such as electricity consumption, may be available only at the installation level rather than at the individual production process level. This step enables the calculation of an attribution ratio for your CBAM good. This ratio is crucial for accurately allocating emissions to your CBAM good when only installation-level data is accessible.

Example: A plant produces a total of 100 tonnes of goods, including 20 tonnes of pig iron via the Blast Furnace route. If the plant's electricity consumption results in 100 kg of CO2 equivalent (eCO2) emissions, the amount of carbon emissions from electricity consumption allocated to the 20 tonnes of pig iron produced via the Blast Furnace route would be: (20 tonnes/100 tonnes)×100 kg eCO2=20 kg eCO2.

Action: Input the total tonnage of all goods produced within the installation (both CBAM and non-CBAM goods) and the specific tonnage of the designated CBAM good produced within that same installation into their respective fields.

Step 2: Declare the electricity consumption of your installation

This step addresses the "indirect emissions" associated with electricity consumption.

Purpose: According to CBAM regulations, electricity consumption is classified as "indirect emissions" and must be included in the calculation of Specific Embedded Emissions Indirect (SEEi).

Action: Select the appropriate scenario for your installation's electricity supply:

  • Direct Grid Supply: If your installation draws electricity directly from the national grid, input the total amount of grid electricity consumed by your installation in kilowatt-hours (kWh). Subsequently, select the country where your installation is located.

  • Self-Generation: If your company generates its own energy, select the relevant fossil fuels from the provided list in the second table and input their respective consumption amounts used in the energy generation process. This data will be utilized to calculate the carbon emissions arising from the installation's electricity generation, which will then be appropriately allocated to the production process.

Example:

Imagine your installation consumes 1,000 kWh of electricity in a given period. This electricity is sourced from two places: 700 kWh comes from the national grid, and 300 kWh is generated on-site using your company's solar panels.

In this module, you would only input the 700 kWh from the national grid. The 300 kWh generated by the renewable solar source would not be declared, as it is considered to have zero direct operational emissions for the purpose of this calculation.

Step 3: Declare the raw materials used in the transformation process to produce this CBAM good

This step captures the "direct emissions" arising from the transformation of raw materials.

Purpose: Direct emissions resulting from the transformation process, as defined by CBAM, are considered "direct emissions" and must be included in the calculation of Specific Embedded Emissions Direct (SEEd), alongside fuel combustion emissions. These emissions can originate from stoichiometric emissions due to carbonate decomposition or the processing of ferrous metals.

Action: Two dedicated tabs, "Process emissions" and "Carbonate process emissions," are available for this step. The functionality of both tabs is identical:

  • Populate the corresponding table with the quantities (in kilograms) of carbonates or ferrous metals utilized in the production process of this specific CBAM good.

  • Irrelevant raw materials can be disregarded or skipped.

⚠️ You might find some precursors in the list, however the emissions accounted for are not the same:

  • Emissions accounted in this step belong to the direct combustion/transformation of said raw materials/precursors

  • Emissions from the production of relevant raw materials (raw materials that are also CBAM goods) will be included in step 5.

Step 4: Declare the amount of fuel used to produce this CBAM good

This step also accounts for "direct emissions" from fuel combustion.

Purpose: Direct emissions stemming from fuel combustion, as defined by CBAM, are classified as "direct emissions" and must be included in the SEEd calculation, in addition to the process emissions from raw material transformation mentioned above. This includes emissions from both fossil and biomass fuel usage.

Action: Two dedicated tabs, "Fuel combustion" and "Biomass fuel combustion," are available for this step. The functionality of both tabs is identical:

  • Populate the corresponding table with the quantities (in kilograms) of fuel combusted during the production process of this specific CBAM good.

  • Irrelevant fuel types can be disregarded or skipped.

Step 5: Declare the amount of relevant precursors used to produce this CBAM good

This step ensures the integration of emissions from intermediate CBAM goods.

Purpose: Relevant precursors are defined as CBAM goods that are subsequently used in the production of other CBAM goods. If the materials utilized to produce the final CBAM good are themselves CBAM goods, the regulation mandates the integration of the Specific Embedded Emissions (SEE) of these relevant precursors into the SEE of the final CBAM good.

  • Example: To produce an aluminum product, an operator might purchase unwrought aluminum product. Since both are CBAM goods, the final SEE (both direct and indirect) of the aluminum product produced by the operator will include the SEE (direct and indirect) of the unwrought aluminum precursor.

Action: Fill in the provided table with the amount (in kilograms) of relevant precursors (from in or outside of the EU) used in the production process of this specific CBAM good.

Step 6: Answer specific questions regarding the production of your CBAM good

This final step addresses additional regulatory requirements.

Purpose: The CBAM regulation requires the submission of supplementary details beyond the SEEi and SEEd of the CBAM good in question.

Action: Scroll down to the section specifically dedicated to your CBAM good and accurately input your answers to the required questions.

Once you have finished all the above-mentioned steps, you will will the SEEi and SEEd of your CBAM good upon returning to the recap table.

General Best Practices

  • Save Frequently: Always click "Save" and "Section Completed" to ensure that all entered data is properly saved and recorded.

  • Utilize Filters: A filter function is available on the right side of every table to facilitate easy identification of relevant elements.

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