Why is a Ludhiana forging unit's CBAM figure mostly the steel bar it buys?

Question

Senseible · Accepted Answer

Because the bar is a precursor carrying the mill's embedded emissions, often around two tonnes of CO2e per tonne, while the forge adds only its furnace fuel. With induction heating, the forge adds almost nothing, since electricity is not counted for steel goods under CBAM. Bar consumed, including flash and scale losses, times the mill's specific embedded emissions. Fuel for oil- or gas-fired heating furnaces, if used. Divided by tonnes of forgings produced. An induction billet heater replaces furnace oil or gas with electricity. For iron and steel goods, CBAM counts direct emissions only, so the heating drops out of the CBAM figure. The electricity still counts in a full footprint for buyers reporting Scope 3. Verified specific embedded emissions per grade or CN code for the year, or CBAM Registry access if the mill is registered. Yield matters too: cutting flash losses reduces the bar per tonne of forgings.

Why is a Ludhiana forging unit's CBAM figure mostly the steel bar it buys?

Where the figure comes from

Why induction helps the CBAM figure

What to ask your mill for

Worked example: 100 t of forgings (illustrative inputs)

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