CBAM for Indian Exporters: What Data Actually Matters

A major relief for Indian MSMEs and specialty exporters is the 50-tonne de minimis exemption introduced under Regulation (EU) 2025/2083:

• Cumulative Annual Scope: Under Regulation (EU) 2025/2083 (Omnibus Reform), the de minimis exemption applies on a cumulative annual basis per importer (EORI number) across a calendar year. An EU importer whose aggregate net mass of imported CBAM-covered goods across all consignments stays under 50 tonnes in a calendar year is exempt from CBAM certificate surrender requirements.
• Operational Impact: The moment an importer's cumulative CBAM imports reach or exceed 50 tonnes within the calendar year, all CBAM goods imported by that EORI number during that year become subject to full CBAM reporting and surrender obligations.
• Anti-Circumvention Compliance: Because the 50-tonne threshold is calculated as a cumulative annual total per EORI number, splitting a large order (e.g., 500 tonnes) into multiple smaller consignments (e.g., ten 49-tonne shipments) does not avoid CBAM obligations, as all shipments aggregate toward the importer's 50-tonne annual total. Artificially routing shipments across multiple shell entity EORI numbers to evade the annual threshold triggers anti-circumvention investigations under Article 27 of Regulation (EU) 2023/956.

CBAM applies to specific Combined Nomenclature (CN) codes defined in Annex I of Regulation (EU) 2023/956. For Indian exporters, the primary covered sectors include:

• Iron & Steel (CN Chapter 72 & select Chapter 73): Pig iron (7201), Direct Reduced Iron / DRI (7203), Crude steel billets/slabs (7207), Hot-rolled flat products (7208), Stainless steel bars/sections (7218/7222), Wire rod (7213), Seamless & welded pipes/tubes (7304/7306). [Calculate CN 7208 Default Liability & Scenario Range →](/cbam-hs-code/7208)
• Aluminium (CN Chapter 76): Unwrought unwrought primary/alloyed aluminium (7601), Aluminium powders/flakes (7603), Aluminium bars/profiles (7604), Wire (7605), Plates/sheets/strip (7606). [View CN 7601 Aluminium Smelter vs Recycled Factors →](/cbam-hs-code/7601)
• Cement (CN 2523): Cement clinkers (2523 10 00), Portland cement (2523 29 00), Aluminous cement (2523 30 00). [View CN 2523 Cement Factors →](/cbam-hs-code/2523)
• Fertilizers (CN 2814, 3102, 3105): Anhydrous ammonia (2814 10 00), Nitric acid (2808 00 00), Urea (3102 10), Ammonium nitrate (3102 30). [Calculate CN 3102 Urea Exposure →](/cbam-hs-code/3102)
• Hydrogen (CN 2804 10 00): Pure hydrogen gas/liquid. [View CN 2804 Hydrogen Factor →](/cbam-hs-code/2804)

Verify your exact 8-digit CN code against Annex I of Regulation (EU) 2023/956 to establish reporting obligations. Exporters with multi-product portfolios can also [request a 48-Hour Primary-Data Exposure Assessment →](/pilot).

Under Commission Implementing Regulation (EU) 2025/2547 Annex III, Specific Embedded Emissions (SEE_g) are calculated for a 12-month production period per metric tonne of covered good (g):

Where: * **AttrEm_g**: Direct and indirect attributed emissions of the installation's production process for good g (expressed in tCO_2e). * **AttrEm_{prec}: Embedded emissions from consumed precursor materials (e.g. DRI, pig iron, or clinker used in downstream production). * AL_g**: Activity Level—the total net production volume of good g produced in the installation during the reporting period (in tonnes).

Direct Attributed Emissions:

• 1. Fuel combustion: F_{combust} × NCV × EF_{fuel} (coking coal, natural gas, furnace oil)
• 2. Process emissions: M_{raw} × EF_{process} (limestone calcination CaCO_3 → CaO + CO_2)
• 3. Net heat balance: Q_{net} × EF_{heat}

Indirect Attributed Emissions:

• Electricity consumption: E_{consumed} × EF_{grid/PPA}, using the India national grid factor of 0.7117 tCO2/MWh (Central Electricity Authority Baseline Database for GHG Emissions v21.0, FY 2024-25) unless a direct physical PPA with 1-hour interval smart metering is proven under IR 2025/2547 D.2.4.

To illustrate how Annex III operates in practice, consider an Indian steel mill producing 10,000 tonnes of Hot-Rolled Coil (HRC - CN 7208):

1. Activity Level (AL_g)

• Net HRC Production = 10,000 tonnes

2. Direct Emissions (Scope 1)

• Coking Coal & Fuel Gas Combustion = 16,500 tCO_2e
• Limestone Calcination Process = 1,500 tCO_2e
• Total Direct Attributed Emissions (AttrEm_{direct}) = **18,000 tCO_2e**

3. Indirect Emissions (Scope 2)

• Electricity Consumed = 4,000 MWh
• CEA Grid Factor = 0.7117 tCO2/MWh (Central Electricity Authority Baseline Database for GHG Emissions v21.0, FY 2024-25)
• Indirect Emissions = 4,000 × 0.7117 = \mathbf{2,846.8\ tCO_2e}

4. Precursor Emissions (Sponge Iron / DRI)

• 6,000 tonnes of DRI precursor used @ 1.1\ tCO_2e/t embedded = **6,600 tCO_2e**

5. Total Specific Embedded Emissions (SEE) Calculation

By presenting this verified primary figure (2.7464\ tCO_2e/t), the Indian mill enables its EU buyer to avoid the default value penalty under IR 2025/2621 (3.85\ tCO_2e/t), saving the importer **1.1036\ tCO_2e per tonne in certificate surrenders** (equivalent to ~€110/tonne savings at €100/t certificate prices).

For complex goods (e.g., steel wire rod produced from purchased billets), Annex III mandates that emissions embedded in precursor materials must be added to the producing installation's own processing emissions.

• Steel Billets → Precursors: DRI / Sponge Iron, Pig Iron, Scrap
• Aluminium Extrusions → Precursors: Unwrought Primary Aluminium Ingot, Alloying elements
• Mixed Fertilizers → Precursors: Ammonia, Nitric Acid

If an Indian mill buys sponge iron from a third-party supplier, it must obtain the supplier's actual primary SEE_{precursor} data. If supplier data is unverified, default precursor values apply, inflating the final product's carbon score.