CBAM indirect emissions: when electricity counts (and when it doesn't)
For iron, steel and aluminium only direct emissions count. Cement and fertilisers add indirect emissions. The sintered-ore precursor exception for steel.
Published 19/10/2026 · Facts checked on 2026-10-18
Answer box
Under CBAM, iron, steel and aluminium count direct emissions only. Electricity used to run smelters, rolling mills and extrusion presses is not added. The exception: sintered-ore precursor indirect emissions carry into steel goods. Cement and fertilisers count direct and indirect emissions.
The scope boundary by sector
| Sector | Direct | Indirect |
|---|---|---|
| Iron & steel | ✓ | Only sintered-ore precursors |
| Aluminium | ✓ | ✗ |
| Cement | ✓ | ✓ |
| Fertilisers | ✓ | ✓ |
| Electricity | ✓ | n/a |
| Hydrogen | ✓ | ✗ |
The sintered-ore exception
Sintering ore is energy-intensive and typically grid-powered. The regulation carries the sinter-plant indirect emissions into any steel goods that use that sinter as a precursor. CBAMWorks applies this exception automatically when a precursor is marked as sinter.
Why electricity isn’t added for steel and aluminium
The design treats the main EU-ETS electricity price pass-through as covering indirect emissions already. The rule may evolve; the rule tracker will reflect any change.