CBAM From Embedded Emissions to Compliance and Cost

Notice · About the author · Preface · How to use this book · Abbreviations · List of worked examples

• Chapter 1 — Why CBAM Exists: Carbon Leakage and the End of Free Allocation
• Chapter 2 — Actors, Obligations and the Annual Cycle
• Chapter 3 — The Definitive Shift: What Changed on 1 January 2026

• Chapter 4 — The Legal Architecture of CBAM
• Chapter 5 — Citing, Reading and Labelling the Sources

• Chapter 6 — Scope: Goods, Origin and CN Classification
• Chapter 7 — Aggregated Goods Categories, Functional Units and Gases
• Chapter 8 — The De Minimis Threshold, Special Procedures and Circumvention

• Chapter 9 — What Embedded Emissions Are, and Are Not
• Chapter 10 — Dividing the Installation into Production Processes
• Chapter 11 — Attribution: Heat, Waste Gases and Electricity Between Processes
• Chapter 12 — Precursors and Complex Goods

• Chapter 13 — Monitoring Direct Emissions: Methodologies and Calculation Factors
• Chapter 14 — The Mass Balance Method and Biomass
• Chapter 15 — Non-CO₂ Gases, CO₂ Transfers and Sector-Specific Monitoring Rules
• Chapter 16 — Activity Data, Uncertainty, the Cost Test and the Control System
• Chapter 17 — Electricity: Indirect Emissions and Imported Electricity
• Chapter 18 — Default Values, Mark-ups and Data Gaps

• Chapter 19 — Iron and Steel: Goods, Routes, System Boundaries and Precursors
• Chapter 20 — Iron and Steel: Calculating SEE, SEFA and the Certificate Obligation
• Chapter 21 — Cement, Aluminium, Fertilisers, Hydrogen and Electricity: Principles

• Chapter 22 — The Monitoring Plan
• Chapter 23 — The CBAM Data Model and Workbook Controls
• Chapter 24 — The Operator's Emissions Report, Summary and Declarant-Specific Addendum
• Chapter 25 — The CBAM Registry for Third-Country Operators

• Chapter 26 — Data Types, Data Quality and the Evidence Chain
• Chapter 27 — Designing Controls with Tolerances
• Chapter 28 — Twenty-Five Failure Modes and How to Prevent Them

• Chapter 29 — Verification: Who, When and Under Which Rules
• Chapter 30 — Verification in Practice: Risk-Based Testing, Findings and Fast Tests

• Chapter 31 — CBAM Certificates: Declaration, Price, Holding, Surrender, Repurchase, Cancellation
• Chapter 32 — The Two Deductions: SEFA and Carbon Price Paid
• Chapter 33 — The Economics of Proof: When Actual Data Pay
• Chapter 34 — Penalties, Mitigation and Contractual Liability

• Case 1 — "Nile Scrap Steel": scrap-EAF and caster (Ch. 13–16, 19, 28)
• Case 2 — "Delta Iron": gas DRI-EAF long products (Ch. 10–20, 22, 24)
• Case 3 — "Suez Re-Rolling": billets and FeMn purchased (Ch. 12, 18, 30)
• Case 4 — "Red Sea Integrated": BF-BOF works (Ch. 10–11, 19–20, 30)
• Case 5 — Mass-balance file audit (Ch. 14, 27–28, 30)
• Case 6 — "Two Rivers Metals": two sites, five customers (Parts IV–XII)
• Case 7 — "Canal Fasteners": finishing plant (Ch. 12, 19, 33)
• Case 8 — Egypt: a DRI/EAF rebar exporter under the definitive regime (Ch. 18, 20, 31–33, 37)

• Chapter 35 — The Readiness Roadmap
• Chapter 36 — The Supplier Programme: Precursor Data by Design
• Chapter 37 — CBAM in the Boardroom: Three Numbers and One Date
• Chapter 38 — What Is Still Moving: Law in Force versus Proposals

• Appendix A — Symbols
• Appendix B — Equation index (CIR 2025/2547)
• Appendix C — Selected standard factors (Annex II G)
• Appendix D — Key dates
• Appendix E — Drafting errors and tensions
• Appendix F — Operator's one-page checklist

Table of provisions cited · Index of terms