What is the difference between direct and indirect emissions?

Process emissions vs. electricity-related emissions

Direct emissions are those generated during the production processes of CBAM goods, including emissions from the production of heating and cooling, regardless of where that heating or cooling is produced.

Indirect emissions, on the other hand, are those associated with the production of electricity consumed during the manufacturing of CBAM goods.

This distinction is important because during the transitional phase, both direct and indirect emissions must be reported for all CBAM goods, while in the definitive phase, only direct emissions will be considered for some sectors (iron/steel, aluminium, and hydrogen).