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.

07 OCTOBER 2022 AL CIRCLE

Norway’s budget proposal for 2023 impacts Norsk Hydro’s domestic activities

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

On October 6 2022, the Government of Norway presented a budget proposal for 2023, and the draft incorporates several elements affecting Hydro's activities in the Norwegian market.

Norway’s budget proposal for 2023 impacts Hydro’s domestic activities

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The Norwegian aluminium and renewable energy company Norsk Hydro headquartered in Oslo, produces 9.4 TWh of equity power annually during an average year. It operates five wholly-owned primary production facilities in Norway, with a combined capacity of about 1.1 million tonnes of primary aluminium. Moreover, Hydro has an aluminium extrusion plant in Magnor. The overall company employs around 4500 people in the country.

The national budget for 2023 includes proposals to raise resource rent taxes on hydropower and clarify the CO2 compensation scheme.

On September 28, the government proposed an additional resource rent tax and a new high-price contribution on hydropower and wind power. However, the rise in the resource rent tax on hydropower from 37 to 45 per cent will apply to Hydro's equity power production and be applicable for the full year 2022. The hike implies an additional resource rent tax for Hydro of approximately NOK 250 - 300 million for 2022.

According to Hydro, other changes in the taxation of power production will have a limited impact on the company.

The CO2 compensation scheme for 2023 is included in the national budget and applies to Hydro's aluminium production using purchasing power and equity power. The EU has established the framework for CO2 compensation. The scheme covers energy-intensive industries in competition with countries where power prices are not affected by CO2 costs. Using the CO2 compensation scheme, the sector can partially offset CO2 costs. In the budget year 2023, the government introduced a floor of NOK 200 per tonne of CO2. During 2023, CO2 compensation for 2022 is expected to amount to around NOK 2.2 - 2.3 billion. By contrast, NOK 1.7 billion will be distributed in 2022 as CO2 compensation for 2021.

Hilde Merete Aasheim, the President and CEO, said, "A robust and predictable CO2 compensation scheme is an essential prerequisite for continued investment and development of industry in Norway. In today's demanding power market, CO2 compensation significantly reduces indirect CO2 costs for power-intensive industries. The high power prices have led to a significant shutdown of European industry."

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