Guidance for Suppliers
As a supplier, you need to choose an appropriate methodology for calculating the carbon emissions embedded in your products. There are two primary approaches: A measurement-based approach and a calculation-based approach. Within the calculation-based approach, you can decide between the standard methodology and the mass balance methodology.
Video Recording - CBAM Workshop
Measurement-Based Approach
Overview: This approach requires the installation of measurement systems to directly measure the emissions from production processes.
Requirements:
Installation and maintenance of precise measurement equipment.
Regular calibration and verification of the measurement systems.
Detailed monitoring and reporting of emissions data.
Calculation-Based Approach
Under the calculation-based approach, there are two methodologies to choose from: the standard methodology and the mass balance methodology.
1. Standard Methodology
Overview: This methodology involves using predefined emission factors and activity data to calculate emissions.
Requirements:
Use of standardized emission factors provided by relevant authorities.
Detailed record-keeping of activity data such as fuel consumption, production volumes, and other relevant parameters.
Regular updates and validation of emission factors and calculation methods.
2. Mass Balance Methodology
Overview: This approach involves accounting for the input and output materials and their respective emissions within the production process.
Requirements:
Comprehensive tracking of all input and output materials.
Application of specific emission factors to these materials to determine the total emissions.
Regular audits to ensure accuracy and consistency in the mass balance calculations. (From 2026 onwards)
Recommendation: Due to its simplicity, we recommend using the mass balance methodology. It is generally easier to implement and manage compared to the other methods.
Choosing the Best Approach
In this presentation, you will find an overview of the different calculation methodologies, as well as materials to help you choose the approach best suited to your operations. Here's a summary to guide your decision:
Measurement-Based Approach: Best suited for suppliers with the capability to install and maintain sophisticated measurement systems
Calculation-Based Approach:
Standard Methodology: Suitable for suppliers with access to reliable emission factors and detailed activity data.
Mass Balance Methodology: Recommended for its simplicity and ease of implementation. It is particularly useful for suppliers looking for a straightforward and manageable way to calculate emissions.
By carefully reviewing the methodologies and considering your operational capabilities, you can select the most appropriate approach to meet CBAM requirements and ensure accurate reporting of your carbon emissions. Also take the Chapter on Data Sources (Part 3) into consideration to ensure you can meet the standards required for the respective methodologies.
Mass Balance Methodology
Mass Balance Methodology for CBAM: Guidance for Suppliers
Key Components of the Mass Balance Methodology
Carbon Content: The core component of this methodology is the carbon content.
Calculation Approach: Direct embedded emissions are totaled, and then the carbon content of outputs is subtracted. The difference equals the emissions during the process.
Template for the Mass Balance Methodology:
Steps for Calculations
(can also be found in the "Guidebook" of the Template)
1. Choosing the Methodology
You can choose between the standard and the mass balance methodology for each production process.
Unlike the standard methodology, the mass balance methodology does not link emissions to specific input materials but calculates a mass balance between the carbon input and output of the system.
Due to its simplicity, we recommend using the mass balance methodology. This is also the approach for which we have created a template.
2. Entering the CN Code
Enter the CN Code you want to perform calculations for into cell C17 of the template sheet.
Read through the indicated pages of the guidance document. The relevant production steps and precursors for your process are listed there.
You can also find a visual of an exemplary production process on one of the indicated pages. An example of a production process is provided to the right.
3. Mapping Your Production Process
Map your own production process and get an overview of the different steps and all inputs and outputs.
If you are trading these goods and are not the actual producer, you should request the CBAM data from the producer.
4. Specifying the Reporting Period
Specify a reporting period for which you want to perform the calculations.
You can choose between either a fiscal year or calendar year, depending on what is more convenient for you.
5. Gathering Relevant Data
Gather the relevant data, mainly the quantity of inputs and outputs for each production process.
This should be the entire quantity over the chosen reporting period, not just the quantity associated with the supplier that provided you with this template.
Most companies use a calendar year or fiscal year as the relevant time frame.
6. Creating a Template Copy
For each production process, create a copy of the template you want to use in this workbook.
Right-click on the existing sheet in the sheet overview at the bottom, then select the "Move or Copy" menu.
Name the new sheet after the CN code for which you’re performing the calculations.
Delete the exemplary data inputs provided in the sheet before using it for your calculations.
7. Handling Special Materials and Adjustments
If a material is not available in the dropdown for different types in the combustion emissions, process emissions, direct emissions, or country menus for indirect emissions, you will need to fill it in manually.
For complex production processes, you might need to apply changes to the sheet. For instance, if your process generates waste gases used to generate electricity, you might include a reduction from the direct emissions due to this.
8. Filling Out the Template
Follow each step within the sheet to fill out the template accurately.
9. Checking Sector-Specific Requirements
Refer to the educational materials provided by Tacto to see other sector-specific requirements.
For steel products, for example, you need to provide the percentages of other alloying elements.
10. Submitting Data
Enter the outputs in the purple fields into the CBAM requests you have received from Tacto.
You will also need to add other data about your installation.
There is no need to send this file to Tacto or your supplier; the template is provided solely for your convenience.