April 4, 2026·9 min read·customs-invoice team

CBAM for Aluminium Imports: How Smelter Power Source Doubles Your Cost

Hydro-powered Norwegian aluminium → ~€20/t CBAM. Coal-powered Chinese aluminium → ~€450/t. Same ingot, same CN code. The smelter's electricity mix dominates the cost, and the EU defaults are punishing for unverified data. Worked example with CN 76011000.

Short version. Aluminium is the most electricity-sensitive sector under CBAM. The same kilogram of CN 76011000(unwrought aluminium) costs ~€20 per tonne in CBAM if it came from a hydro-powered Norwegian smelter, ~€450 per tonne if it came from a coal-powered Chinese smelter. Both surrender direct AND indirect emissions for aluminium during the definitive period (per Reg 2025/2547), so the smelter's grid-electricity mix is baked directly into your CBAM cost. Origin choice for aluminium importers isn't just a price decision — it's a CBAM-cost decision.

Compare aluminium origins side-by-side

Pre-filled with CN 76011000 (unwrought aluminium) from Norway. Switch to China, India, or UAE in the origin picker to see the CBAM cost shift in real time.

Open the aluminium calculator

The electricity-mix problem

Primary aluminium production runs through the Hall-Héroult cell, an electrolysis process that consumes ~14 MWh of electricity per tonne of metal output. That electricity is where 60–80% of the embedded emissions live. The grid mix where the smelter operates determines the carbon intensity of that electricity, and CBAM surrenders both direct + indirect for aluminium — so the grid feeds straight into your liability.

Origin	Smelter electricity source	Total intensity (~)	CBAM cost / t (~)
Norway (Hydro)	Hydroelectric	~2 tCO₂e/t	~€20
Iceland (Geothermal)	Geothermal + hydro	~3 tCO₂e/t	~€40
UAE (Gas)	Natural gas	~10 tCO₂e/t	~€220
India (Mixed coal)	Coal-heavy grid	~14 tCO₂e/t	~€340
China (Coal-dominant)	Captive coal plants	~17 tCO₂e/t	~€450

Approximate; based on EU default values per Reg 2025/2620 and Q1 2026 certificate price €75.36/tCO₂e. Verified supplier intensity may be lower.

Worked example: 50 t unwrought aluminium

One container of 50 tonnes of 76011000 from Norway vs from China:

Origin	Direct + Indirect tCO₂e/t	Total surrender	Net CBAM cost
Norway	2.0	100 tCO₂e	~€1,000
China	17.0	850 tCO₂e	~€22,500

Same metal, ~22× cost difference, no free-allocation deduction modelled here for simplicity (aluminium has its own SEFA benchmark). Run live in the calculator to see exact numbers with the deduction applied.

Primary vs secondary aluminium

Recycled (secondary) aluminium skips the electrolysis step. Default intensity is ~0.5 tCO₂e per tonne — roughly 1/30th of coal-powered primary. EU defaults distinguish primary vs secondary per Reg 2025/2620; if your supplier casts ingots from scrap, ask them to certify the secondary route. The cost difference is enormous and the calculator surfaces it once you select the route.

Inward Processing Relief twist

Aluminium scrap shipments under Inward Processing Relief may be exempt from CBAM if the goods are re-exported without ever entering free circulation. Document the IPR authorisation number on the Submission stage of the calculator; the PDF carries it through. Talk to your customs broker if you're uncertain — the line between IPR and free circulation can be subtle for processing-and-re-export flows.

What our calculator does for aluminium

Auto-detects aluminium-sector CN codes (76011000–76090000) and surfaces the route picker (primary / secondary / various downstream).
Pulls origin-country grid-electricity defaults from a mirror of Reg 2025/2620 §5.3.
Surrenders BOTH direct + indirect emissions per the aluminium row of Reg 2025/2547's indirect-surrender table.
Renders a tamper-evident PDF with origin, route, intensity source, and IPR authorisation number cited.

Compare aluminium origins side-by-side

Pre-filled with CN 76011000 (unwrought aluminium) from Norway. Switch to China, India, or UAE in the origin picker to see the CBAM cost shift in real time.

Open the aluminium calculator

FAQ

Why is aluminium so sensitive to electricity mix?

Primary aluminium production is electrochemical — bauxite is refined to alumina, then alumina is electrolyzed in a Hall-Héroult cell that consumes ~14 MWh per tonne of metal. That electricity dominates the embedded emissions: a hydro-powered Norwegian smelter has ~2 tCO₂e per tonne of aluminium, while a coal-powered Chinese smelter is ~17 tCO₂e per tonne. Same metal, ~8× the carbon. CBAM surrenders both direct AND indirect emissions for aluminium during the definitive period, so the smelter's grid mix flows directly into your CBAM cost.

Are recycled aluminium imports treated the same?

No — secondary (recycled) aluminium has dramatically lower intensity (~0.5 tCO₂e per tonne) because it skips the electrolysis step. EU defaults distinguish primary vs secondary; if your supplier produces from scrap, ask them to certify the route per Reg 2025/2620 §5.3. The CBAM cost difference is large enough that some importers are explicitly switching procurement to secondary-aluminium suppliers.

What about aluminium scrap brought into the EU under Inward Processing Relief?

Inward Processing Relief (IPR) shipments may be in or out of CBAM scope depending on the IPR authorisation type — talk to your customs broker. The general rule: if the goods are released into free circulation in the EU at any point, CBAM applies; if they're re-exported under IPR without free circulation, they're typically out of scope. Document the IPR authorisation number; the calculator's submission stage captures it.

Are downstream aluminium products (sheet, profiles, foil) in scope?

Yes — Annex I of Reg 2023/956 covers CN 7601 (unwrought aluminium), CN 7604 (bars, rods, profiles), CN 7605 (wire), CN 7606 (sheet > 0.2mm), CN 7607 (foil), CN 7608 (tubes), CN 7609 (fittings). Downstream products inherit the embedded emissions of the upstream metal plus a small process addition. The calculator handles the rollup automatically once you enter the CN code.

Sources

Regulation (EU) 2023/956 — Annex I aluminium CN codes (CN 7601–7609).
Implementing Reg (EU) 2025/2547 — aluminium indirect-surrender table (definitive period: both direct + indirect surrender).
Implementing Reg (EU) 2025/2620 — aluminium production-route catalog, primary vs secondary, default intensities by origin country.