How does CBAM treat gas-fired captive power at a UAE aluminium smelter such as those at Al Taweelah?
The emissions from generating the smelter's electricity, even in its own gas-fired plant, are indirect emissions and are not charged for aluminium under CBAM today. The charge covers direct emissions: anode consumption, perfluorocarbons from anode effects and fuel burnt on site, plus any precursor aluminium.
What is in and out
- In: CO2 from carbon anodes consumed in electrolysis.
- In: CF4 and C2F6 from anode effects, using the GWPs in the CBAM rules.
- In: fuel for anode baking, casthouse furnaces and other on-site heat.
- Out of the charge: emissions from producing the electricity, whether from the grid or a captive gas plant.
Why it matters for Gulf metal
Gulf smelters run on gas-fired power, which emits far less per MWh than coal but far more than hydro. Under Annex II only direct emissions are charged, so the CBAM figures of a gas-powered and a coal-powered smelter can be close, while their full footprints differ widely. EU buyers counting Scope 3 will see that difference.
Carbon price deduction
Article 9 allows a deduction only for a carbon price effectively paid on the emissions. Where no carbon price applies at the smelter, nothing is deducted.
What Senseible does here
Senseible reads your fuel and electricity bills into dated, fingerprinted installation records, the starting point for the actual emissions your EU importer asks for, and its CBAM cost calculator estimates certificate cost from 2026 to 2034 for covered goods. Senseible does not verify emissions or file CBAM declarations.
Sources: Regulation (EU) 2023/956 (CBAM Regulation), consolidated, European Commission, CBAM definitive regime
Last reviewed 2026-10-21. Recheck if the Commission extends indirect emissions to aluminium under Article 30.