What are simple and complex goods under CBAM?

Distinction based on use of CBAM precursors

CBAM distinguishes between simple and complex goods.

Simple goods are those produced from input materials that are considered to have zero embedded emissions under the CBAM methodology. Their embedded emissions are based entirely on the emissions occurring during their production.

Complex goods, conversely, are those that use relevant precursors (which are themselves CBAM goods) in their production process. For complex goods, the embedded emissions of these precursors must be included in the total embedded emissions calculation.

This distinction is crucial for accurate reporting and calculation of CBAM obligations.