Measure More Accurately
Assess actual versus default emissions, data quality, monitoring and verification readiness.
Reduce Embedded Emissions & CBAM Costs
Find the emissions driving your product footprint, identify realistic reduction measures and understand which investments can improve operating performance and your CBAM position.
CBAM Advisory helps manufacturers, exporters and importers move from emissions measurement to practical action. We combine CBAM methodology, emissions accounting, technology assessment and commercial analysis so clients can decide what is worth changing before they invest.
Three Ways We Can Create Value
Reduce Embedded Emissions
Identify process, energy, fuel, precursor and material opportunities that can reduce embedded emissions.
Improve the Cost Position
Quantify operating savings, CBAM impact, carbon-price adjustments where applicable and the investment case.
Why Better Emissions Data Can Matter
The comparison below distinguishes between the applicable default or current basis, verified actual emissions, and the emissions position after a credible reduction measure.
1. Default / Current Basis
The current regulatory or reporting basis.
2. Verified Actual Emissions
Installation-specific emissions supported by the required evidence and verification.
3. Reduced Verified Emissions
The emissions position after a technically credible reduction measure has been implemented and evidenced.
Default Values vs Verified Actual Emissions: An Illustrative CBAM Cost Comparison
This example shows how the choice between applicable default values and verified installation-specific emissions data can materially change indicative CBAM exposure when actual emissions are lower. It is an illustrative case, not a general rule.
Basis of illustration: Egyptian urea, 2026; Q3 2026 CBAM certificate price: EUR 82.32/tCO2. The default and illustrative actual-emissions scenarios are used solely to demonstrate potential differences in indicative CBAM exposure.
| Scenario | Indicative CBAM cost | Difference vs default |
|---|---|---|
| Actual data - efficient plant | EUR 7.61/t | EUR 35.57/t lower |
| Actual data - average plant | EUR 16.67/t | EUR 26.51/t lower |
| Default values | EUR 43.18/t | Reference case |
What this illustrates: The opportunity is not simply to replace a default value with an actual value. We first determine the applicable methodology and assess whether verified actual emissions provide a different position. We then identify the main emissions drivers and evaluate whether practical technical improvements could reduce verified emissions further.
Illustrative only: actual CBAM liability depends on the applicable methodology, system boundaries, product and origin, precursors, free-allocation adjustment where applicable, eligible carbon-price deductions or relief, and the applicable EU certificate price or UK CBAM rate.
What Could This Mean Annually?
Using the same illustrative Egyptian urea case, the table below compares the total indicative annual CBAM cost under the default-value basis, verified actual emissions for an average plant, and verified actual emissions for an efficient plant.
| Annual import volume | Default values (EUR 43.18/t) | Actual data - average plant (EUR 16.67/t) | Actual data - efficient plant (EUR 7.61/t) |
|---|---|---|---|
| 10,000 t/year | EUR 431,800/year | EUR 166,700/year (EUR 265,100 lower) | EUR 76,100/year (EUR 355,700 lower) |
| 50,000 t/year | EUR 2,159,000/year | EUR 833,500/year (EUR 1,325,500 lower) | EUR 380,500/year (EUR 1,778,500 lower) |
| 100,000 t/year | EUR 4,318,000/year | EUR 1,667,000/year (EUR 2,651,000 lower) | EUR 761,000/year (EUR 3,557,000 lower) |
Illustrative arithmetic only. These figures apply the example rates of EUR 43.18/t, EUR 16.67/t and EUR 7.61/t to the stated annual import volumes. The figures in brackets show the arithmetic difference versus the default-value scenario. They are not guaranteed savings and do not replace a product-, installation- and reporting-period-specific CBAM calculation.
Estimate the Annual Impact
Enter the relevant annual import volume (tonnes) to see the indicative annual difference for this illustration. The result should be read together with the assumptions and disclaimer shown above.
Annual import volume: t/year
- Default values
- Actual data - average plant
- Actual data - efficient plant
Illustrative arithmetic only. These figures apply the example rates of EUR 43.18/t, EUR 16.67/t and EUR 7.61/t to the stated annual import volumes. The figures in brackets show the arithmetic difference versus the default-value scenario. They are not guaranteed savings and do not replace a product-, installation- and reporting-period-specific CBAM calculation.
Rates used: EUR 43.18/t (default values), EUR 16.67/t (actual data - average plant) and EUR 7.61/t (actual data - efficient plant), with the Q3 2026 CBAM certificate price of EUR 82.32/tCO2.
See what this could mean for your product
Start With the Relevant Market
European Union
- Selected goods in cement, iron and steel, aluminium, fertilisers, electricity and hydrogen are within EU CBAM scope.
- Actual verified emissions or Commission default values may be used subject to the applicable methodology.
- The CBAM emissions boundary is sector-specific, so not every reduction in the total product footprint produces the same CBAM effect.
United Kingdom
- UK CBAM starts on 1 January 2027 for specified aluminium, cement, fertiliser, hydrogen, iron and steel goods.
- Actual verified emissions data or applicable UK default emissions values may be used.
- UK CBAM initially applies to direct embodied emissions, including relevant precursor emissions. Indirect emissions are delayed until at least 2029.
- Electricity is not part of the initial UK CBAM sectoral scope.
We assess total emissions reduction separately from current CBAM-cost impact. A measure can be environmentally and commercially valuable even where its current CBAM effect is limited.
Choose Your Sector
Iron & Steel
- Typical Emissions Hotspots
- Ironmaking, EAF, fuels, electricity, scrap and precursors
- Potential Reduction Routes
- EAF optimisation, higher-quality scrap, hydrogen-based routes, energy efficiency, heat recovery, lower-carbon inputs, CCUS where appropriate
Aluminium
- Typical Emissions Hotspots
- Electrolysis, PFCs, anodes, electricity, alumina refining, melting and recycled content
- Potential Reduction Routes
- Pot optimisation, PFC reduction, furnace efficiency, MVR/heat recovery, low-carbon power, scrap sorting, recycled content, emerging inert-anode pathways
Cement
- Typical Emissions Hotspots
- Calcination, clinker, kiln fuels, electricity and process heat
- Potential Reduction Routes
- Lower clinker factor, alternative fuels, kiln efficiency, waste-heat recovery, alternative binders and CCUS
Fertilisers
- Typical Emissions Hotspots
- Hydrogen/ammonia, nitric acid, N2O, fuel and process heat
- Potential Reduction Routes
- Lower-carbon hydrogen, N2O abatement, process optimisation, heat integration, renewable electricity and CCS where appropriate
Hydrogen
- Typical Emissions Hotspots
- Production route, electricity, feedstock efficiency and methane
- Potential Reduction Routes
- Renewable electrolysis, efficiency improvements, methane management and CCS for suitable fossil-based routes
Electricity - EU only
- Typical Emissions Hotspots
- Generation fuel and generation efficiency
- Potential Reduction Routes
- Renewable generation, fuel switching, storage and operational optimisation
What We Assess for Each Sector
For each sector, we assess:
- Where the emissions are coming from
- Which reduction routes could be relevant
- Whether the measure affects total emissions, current CBAM liability, or both
- The maturity / implementation profile of the technology
Example – Aluminium
| Emissions Hotspot | Potential Solution | Emissions Impact | Current CBAM Relevance |
|---|---|---|---|
| Electrolysis / potroom | Pot optimisation, anode-effect control and PFC reduction | High potential where the issue is material | Direct emissions - potentially strong relevance |
| Melting / casting | Furnace optimisation, regenerative burners, electromagnetic stirring and heat recovery | Energy, fuel and yield improvement | Relevant where direct fuel emissions fall within the product boundary |
| Alumina refining | MVR, heat recovery, electrification and lower-carbon process heat | Can materially reduce refinery energy demand | Depends on precursor treatment and product route |
| Electricity | Renewable power, PPAs and electrical-efficiency measures | Potentially high total-footprint reduction | Current CBAM effect depends on the applicable indirect-emissions boundary |
| Materials / circularity | Higher recycled content, better scrap sorting and lower-carbon precursors | Can materially change product emissions | Depends on product route, precursor rules and methodology |
| Strategic technology | Inert-anode pathway | Potentially very high direct-emissions reduction | Strategic / emerging; project-specific assessment required |
How CBAM Advisory Assesses an Opportunity
- Emissions Baseline
- CBAM Boundary
- Hotspots
- Reduction Options
- Investment Case
- Provider Selection
- Implementation
- Updated Emissions / Verification Readiness
01 - Establish the Emissions Baseline
We review the production route, energy use, fuels, raw materials, precursors and available emissions data.
You receive: A documented baseline and initial data-gap assessment.
02 - Determine the CBAM Emissions Boundary
We identify which emissions currently feed the relevant EU or UK CBAM calculation and which emissions remain important to the wider product footprint.
You receive: A clear CBAM-boundary assessment so the client knows which reductions currently affect CBAM cost.
03 - Identify the Emissions Hotspots
We identify the processes, energy sources, materials and precursors that materially drive emissions.
You receive: A hotspot analysis showing where intervention is most likely to matter.
04 - Assess Reduction Options
We screen realistic technical options against:
- Emissions-reduction potential
- Current CBAM relevance
- Technical compatibility
- Technology maturity
- CAPEX and OPEX
- Energy, fuel and material savings
- Production / yield impact where relevant
- Implementation complexity, downtime and timeframe
You receive: A shortlist of technically credible reduction opportunities.
05 - Build the Investment Case
For the shortlisted options, we compare the complete commercial case rather than CBAM savings alone.
- Indicative tCO2e reduction
- Annual energy, fuel or material savings
- Yield / productivity benefit where relevant
- Current CBAM cost impact where applicable
- CAPEX and OPEX change
- Simple payback
- NPV / IRR where appropriate
- Carbon-price and production-volume sensitivity
- Investment
- Emissions Reduction
- Operating Benefit
- CBAM Impact
- Annual Financial Impact
- Payback / Investment Case
You receive: A technical and financial comparison suitable for management decision-making.
06 - From Assessment to Implementation
Where a reduction opportunity requires specialist equipment, renewable energy or engineering, we identify suitable providers and support the client through technical and commercial evaluation.
Where appropriate, more than one provider can be compared. Recommendations are based on technical fit, emissions impact, economics, delivery capability and the client's circumstances.
Where we have a commercial relationship with a technology provider, we disclose it to the client.
You receive: A provider shortlist and structured basis for technical / commercial comparison.
07 - Track the Improvement
The engineering or technology provider remains responsible for design, equipment, commissioning, warranties and technical performance commitments.
CBAM Advisory focuses on the emissions and CBAM workstream.
- Define which operating data must be captured
- Update the embedded-emissions calculation
- Review monitoring arrangements
- Organise supporting evidence
- Prepare for independent verification where required
You receive: Updated emissions workpapers and an emissions-performance monitoring plan.
What You Receive
CBAM Decarbonisation & Investment Assessment
- Current emissions baseline
- CBAM emissions-boundary assessment
- Emissions-hotspot analysis
- Actual-versus-default assessment where relevant
- Reduction opportunities by sector / process
- Technology-maturity assessment
- Indicative tCO2e reduction
- Current CBAM relevance of each measure
- Technology-provider shortlist
- CAPEX / OPEX comparison
- Annual operating-cost impact
- Indicative annual CBAM impact where applicable
- Payback assessment
- NPV / IRR where appropriate
- Carbon-price and production-volume sensitivity
- Prioritised implementation roadmap
- Emissions-performance and monitoring plan
- Updated emissions / verification-readiness support after implementation
Prioritised Roadmap
| Priority | Typical Character | Decision Question |
|---|---|---|
| Quick Wins | Operational or low-capex changes | What can improve performance quickly with limited investment? |
| Efficiency Investments | Targeted process or equipment upgrades | Which upgrades have a credible technical and financial case? |
| Strategic Decarbonisation | Major energy, technology or production-route changes | Which long-term investments materially change the emissions profile? |
Compare Reduction Opportunities
| Opportunity | Investment | Emissions Impact | CBAM Impact | Timing |
|---|---|---|---|---|
| Process optimisation | Low | Medium | Potentially high where direct emissions are affected | Short |
| Targeted equipment upgrade | Medium | Medium to high | Project / regime dependent | Medium |
| Low-carbon electricity | Medium to high | Potentially high total-footprint impact | Depends on current CBAM boundary | Medium |
| Major process-route change | High | Potentially very high | Potentially high where CBAM-relevant emissions are reduced | Long |
Independent Technology Assessment
We do not recommend equipment before understanding the production route, operating data, emissions hotspot, CBAM boundary and business case.
CBAM Advisory remains focused on the client's emissions and commercial objectives. Technology providers are selected according to technical suitability, project requirements and client circumstances.
Need to Understand What Is Worth Reducing?
Tell us what you produce, where the installation is located, which market you supply and what emissions information you currently have. We will identify the areas worth assessing and the information needed to build a practical reduction and investment plan.