Calculate Embedded Emissions for Unwrought Aluminium (HS7601)

Enter your input

Payable emissions (tCO₂e/t)

Total CBAM Cost (€)

Notes:
There may be a difference when calculating the price with respect to import volume, carbon price, and benchmark emissions, as the embedded formula may result in minor variations due to decimal rounding. Therefore, the actual value may vary.

CBAM is applicable to trade volumes starting from 50 metric tonnes. For trade volumes below 50 metric tonnes, CBAM does not apply.

Usage Procedure – How to use the CBAM Calculator Sheet

Enter or update values only in the INPUT
PARAMETERS section (Highlighted in blue) , including
the carbon price, benchmark emissions, CBAM
chargeable percentage (as per the phase-in year),
and imported quantity.

The system will automatically calculate the payable
emissions and the total CBAM cost (€) based on the
inputs provided.

Notes:
• Change any input value to automatically update CBAM cost.
• Formula used: Carbon price × payable emissions × quantity.
• Model aligned with CBAM supplier-side illustrative methodology.

23 SEPTEMBER 2020 AL CIRCLE

Metal Industry suggests LME to focus on enhancing services instead of creating a separate low carbon aluminium trading platform

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to a Reuters report, the metal industry sees no need for a separate platform on the London Metal Exchange (LME) to trade low carbon aluminium. The industry thinks the exchange should focus on services instead that users need more urgently, such as euro-denominated steel contract.

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Last month, LME outlined its plans for a spot trading platform for low carbon aluminium with a view to support sustainable metal production and sought feedback from the metal industry. A few industry sources, on the condition of anonymity, said the market had the tools needed for consumers willing to pay a premium for sustainable metal.

“LME contracts give you a basic price. If you have additional requirements - location, producer, shape of metal, warehouse company - there will be premiums to pay,” a consumer source said.

The source also said, “Buyers can ask for green aluminium and pay extra, you don’t need a new platform. (The LME) should be concentrating on things like the euro-priced steel contract.”

A metal broking source said, “We still don’t have a euro-priced contract which the industry geared up to use,” while adding, “On sustainability, they should let the market decide.”

Aluminium produced by Norsk Hydro NHY.OL and Russia’s Rusal 0486.HK is considered low carbon as it is smelted with hydropower instead of fossil fuel. This aluminium is largely used in construction, transport, and packaging.

One industry source said the LME might be worried about the impact of a separate green aluminium contract, which would explain its preference for a physical platform.

“They have to be careful, they don’t want to split liquidity. The LME’s aluminium contract is one of the most liquid in the metals world.”

Note to readers: AlCircle brings two-day event for aluminium industry players. We look forward to meeting you virtually at “Global Aluminium Expo 2020” on October 6-7, 2020. For registration, visit www.alcircleevents.com

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