More specifically, What are embedded emissions, and why are they significant in the context of CBAM compliance?
Embedded emissions encompass direct and indirect emissions associated with producing goods, including emissions from precursor materials. These emissions reflect the carbon costs faced by EU ETS installations. CBAM considers both direct and indirect emissions, aligning with EU ETS rules. However, it’s crucial to note that CBAM’s calculation of embedded emissions differs from other methodologies such as the GHG Protocol or ISO 14067.
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