What are embedded emissions in the context of CBAM?

Total emissions associated with production of goods

Embedded emissions refer to the total greenhouse gas emissions associated with the production of CBAM goods, including emissions from the production of precursor materials.

This concept encompasses both direct emissions from production processes and indirect emissions from electricity consumption.

For complex goods, embedded emissions include the emissions of relevant precursors that are themselves CBAM goods. Understanding embedded emissions is crucial as it forms the basis for CBAM reporting and, in the definitive period, for determining the number of CBAM certificates to be surrendered.