# How does a sponge iron unit in Giridih work out its CBAM figure?

Canonical: https://senseible.earth/answers/giridih-sponge-iron-kiln-cbam-figure

Direct reduced iron is a CBAM precursor for steel. Count CO2 from coal burnt in the rotary kiln, minus carbon left in the product and char, using a mass balance. Electricity is not charged for iron and steel goods, but keep the records for buyers' footprints.

## Mass balance inputs

- Coal tonnes and carbon content.
- Iron ore and dolomite inputs.
- Carbon in sponge iron, char and dust.

## Who needs it

Your steel buyer needs your figure as a precursor if their goods go to the EU. Without it, they use default values.

## Records

Coal invoices, lab analysis and production logs per month.

## What Senseible does here

Senseible reads fuel, power and production records into dated, fingerprinted installation records, the starting point for the actual emissions your EU importer asks for.

- [Raipur sponge iron CBAM](https://senseible.earth/answers/raipur-sponge-iron-cbam-embedded-emissions)
- [Sponge iron coal lab records](https://senseible.earth/answers/sponge-iron-kiln-coal-lab-testing-records)
- [Induction furnace billet CBAM](https://senseible.earth/answers/induction-furnace-billet-sponge-iron-cbam)

Sources: [Implementing Regulation (EU) 2023/1773, CBAM reporting rules](https://eur-lex.europa.eu/eli/reg_impl/2023/1773/oj/eng), [CBAM Regulation (EU) 2023/956, consolidated](https://eur-lex.europa.eu/eli/reg/2023/956/2025-10-20)

Last reviewed 2026-10-22.