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Methodology guide -- aluminium
Aluminium is the most electricity-intensive CBAM sector. The 11.71 t CO2/t default for indirect emissions assumes a fossil-heavy grid; verified data from a hydro-powered smelter can reduce your CBAM cost by 80%+ for the same product.
Step 1: identify the smelter and its grid mix. A producer in Norway, Iceland or Quebec (hydropower) faces fundamentally different emissions than one in China or India (coal-heavy grid). Request the supplier's contractual electricity factor or, ideally, residual-mix data from the national TSO.
Step 2: pin down the alumina source. Direct emissions for primary aluminium are dominated by the Bayer-process (alumina refining) and the Hall-Heroult anode consumption. Recycled (secondary) aluminium emits 95% less -- if your supplier blends scrap, ensure the share is documented.
Step 3: collect verified data per the EU template. Reg. 2025/2621 requires direct + indirect split, the production route ("primary" or "from scrap"), and the allocation method when a smelter produces multiple products.
Step 4: apply Article 9 if the origin has a carbon price. Several jurisdictions (e.g. UK ETS, China ETS) cover aluminium smelters -- documented payments deduct from your CBAM bill.