How do embedded emissions differ in CBAM?

Embedded emissions in CBAM encompass a comprehensive view of emissions associated with goods production, including direct and indirect emissions and those from precursor materials. Unlike other methodologies, such as the GHG Protocol or ISO 14067, CBAM’s calculation of embedded emissions aligns with EU ETS rules, reflecting the carbon costs faced by EU ETS installations. Understanding this difference is crucial for accurate CBAM compliance and reporting.

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