Why the route also matters for money: benchmarks · CBAM Aluminium

7.Why the route also matters for money: benchmarks

Episode A2-06 · Routes and benchmarks · 2:32

The free allocation adjustment (S3) uses CBAM benchmarks that depend on route: (K) primary and (L) secondary aluminium.

CN 7601	Column A, BMg* (t CO2e/t)	Column B, BMg (t CO2e/t)
Primary (K)	1,423	1,423
Secondary (L)	0,091	0,091

For aluminium products, Column A covers forming only (for example 0,056 for sheet and wire, 0,166 for foil), while Column B includes the precursor (for example 1,485 (K) or 0,148 (L) for sheet under 7606 11 91). Column A is used with actual data, Column B with default values.

WATCH OUT With default values, the route is the one the Default Values Act assigns to your country: (K) for India, China and "other countries", (L) for Bangladesh, Japan and Mexico, for example. A recycler in a (K) country therefore gains from using actual values.

Sources: FAA Annex points 3.1, 4, 5.1, 5.3; BM-XLS rows 1694-1810; G4 Table 2-2 p.14; DVA-COR Annex I.