Embedded Carbon in Aluminium: CBAM Default 12.40 tCO2/t — Primary vs Secondary
Aluminium has the highest CBAM default of any sector at 12.40 tCO2/t. Secondary aluminium producers can achieve 0.30–0.80 tCO2/t actual — a saving of up to EUR 785 per tonne at current ETS prices.
Find an Aluminium CBAM Verifier →Aluminium CBAM Default vs Actual Emission Values
| Production type | EU Default (tCO2/t) | Typical actual (tCO2/t) | Saving per tonne at EUR 65.42 | Annual saving on 50,000t |
|---|---|---|---|---|
| Primary — hydro grid (Norway, Iceland) | 12.40 | 2.00–4.00 | EUR 549–680 | EUR 27.5–34.0M |
| Primary — gas grid (UAE, Gulf) | 12.40 | 8.00–10.00 | EUR 157–288 | EUR 7.9–14.4M |
| Primary — coal grid (China, India) | 12.40 | 14.00–20.00 | EUR 0 (actual > default) | Use default |
| Secondary — scrap-based | 12.40 | 0.30–0.80 | EUR 750–785 | EUR 37.5–39.3M |
Why Aluminium Has the Highest CBAM Default
Primary aluminium is produced via the Hall-Héroult electrolysis process, which consumes approximately 14–16 MWh of electricity per tonne of aluminium. This extreme electricity intensity means that the grid emission factor of the country of production dominates the embedded carbon calculation. A smelter using coal-heavy electricity (0.90 tCO2/MWh) generates 12.6–14.4 tCO2/t from electricity alone — exceeding the EU default of 12.40 tCO2/t.
The EU default of 12.40 tCO2/t reflects the average of EU primary aluminium production, which uses a mix of hydro, nuclear, and gas-fired electricity. For producers using coal-heavy grids, actual emissions exceed the default — meaning the default is actually advantageous for them. For producers using hydro or gas electricity, actual emissions are significantly below the default.
Secondary Aluminium — The Largest CBAM Saving
Secondary aluminium (produced from recycled scrap) requires only 5–10% of the energy of primary smelting. Actual embedded carbon for secondary aluminium is typically 0.30–0.80 tCO2/t — compared to the 12.40 tCO2/t default. The gap between default and actual is EUR 750–785 per tonne at current ETS prices. For a 50,000-tonne secondary aluminium exporter, documenting actual values saves EUR 37.5–39.3 million per year.
This is the largest absolute CBAM saving available in any sector. Secondary aluminium producers who do not document actual values are leaving tens of millions of euros on the table annually — and making themselves uncompetitive against EU secondary aluminium producers who pay no CBAM.
Which Aluminium Products Are Covered by CBAM?
| Product | CN code |
|---|---|
| Unwrought aluminium (primary and secondary) | 7601 |
| Aluminium bars, rods, and profiles | 7604 |
| Aluminium wire | 7605 |
| Aluminium plates, sheets, and strip | 7606 |
| Aluminium foil | 7607 |
| Aluminium tubes and pipes | 7608 |
| Aluminium structures | 7610 |
Country-Specific Aluminium CBAM Exposure
| Country | Production type | Grid factor (tCO2/MWh) | Typical actual (tCO2/t) | CBAM saving vs default | Country guide |
|---|---|---|---|---|---|
| UAE (EMAL/EGA) | Primary — gas | 0.40 | 8.00–10.00 | EUR 157–288/t | UAE CBAM → |
| India | Primary — coal | 0.82 | 14.00–18.00 | Use default | India CBAM → |
| China | Primary — coal | 0.58 | 12.00–16.00 | Use default or marginal | China CBAM → |
| Turkey | Secondary (dominant) | 0.45 | 0.40–0.80 | EUR 759–784/t | Turkey CBAM → |
| Brazil | Primary — hydro | 0.09 | 2.00–4.00 | EUR 549–680/t | Brazil CBAM → |
Frequently Asked Questions
What is the CBAM default for aluminium?
The EU CBAM default for aluminium is 12.40 tCO2 per tonne — the highest of any CBAM sector, reflecting the extreme electricity intensity of primary aluminium smelting.
What is the actual embedded carbon for primary aluminium?
Primary aluminium actual ranges from 2.00 tCO2/t (hydro-powered) to 18.00+ tCO2/t (coal-powered). UAE smelters typically achieve 8.00–10.00 tCO2/t.
What is the actual embedded carbon for secondary aluminium?
Secondary aluminium (scrap-based) achieves 0.30–0.80 tCO2/t — saving EUR 750–785 per tonne vs the 12.40 default at current ETS prices.
Which aluminium products are covered by CBAM?
CBAM covers unwrought aluminium, bars, rods, profiles, wire, plates, sheets, strip, foil, tubes, pipes, and structures. CN codes 7601–7610.
Does CBAM apply to UAE aluminium exports to the EU?
Yes. UAE is a significant aluminium exporter to the EU. UAE smelters using natural gas-powered electricity typically achieve 8–10 tCO2/t actual — significantly below the 12.40 default.
Store Your Aluminium Embedded Carbon Record
Store Your Verified Embedded Carbon Record for CBAM Compliance →Calculate your aluminium CBAM saving → · Find an aluminium verifier →