Can the origin absorption rule cut the embedded emissions of our composite goods?
No. The EU's CBAM Q&A 4.19 says the absorption rule belongs to rules of origin: it lets an intermediate product keep originating status and disregard the non-originating inputs inside it. Embedded emissions follow completely different rules, so imported steel or aluminium inside your goods still brings its emissions into your figure.
Where the two get mixed up
Under preferential origin rules, an intermediate product made from imported billet can become Indian-originating, and the billet is absorbed for later steps. That settles origin for customs duty. It says nothing about the carbon in the billet.
What CBAM does instead
- Each precursor's embedded emissions are multiplied by the tonnes used per tonne of your product, cut-offs included.
- The precursor figure is its producer's verified actual value or the EU default value.
- Your own direct emissions are added on top.
What to ask the billet supplier
- The verified embedded emissions per tonne for the CN code you bought, and the year it covers.
- The installation that made it, not only the trader who sold it.
- Mill certificates with heat numbers, so each lot links to its figure.
Example: forgings from imported billet
- Billet used: 1.15 t per tonne of forgings
- Billet supplier's verified figure: 2.0 t CO2e per tonne, so 1.15 x 2.0 = 2.30 t CO2e
- Your furnace fuel: 0.25 t CO2e per tonne of forgings
- Forgings: 2.30 + 0.25 = 2.55 t CO2e per tonne, whatever origin the forgings carry
Example figures.
What Senseible does here
Senseible reads purchase invoices for bought billet, rod and coil into dated records with supplier and quantity, so each precursor's tonnes are ready when your figure is built. It does not decide origin.
Sources: European Commission, CBAM Questions and Answers (15 October 2026), question 4.19 and 4.30, Implementing Regulation (EU) 2025/2621, default values
Last reviewed 2026-11-01.