Definitions and production routes for goods
ANNEX IISupplementary provisions
ANNEX II Definitions and production routes for goods 1. DEFINITIONS For the purpose of this Annex and of Annexes III, IV and VIII to IX the following definitions shall apply: (0) ‘activity data’ means the amount of fuels or materials consumed or produced by a process relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes or (for gases) volume in normal cubic metres, as appropriate; (1) ‘activity level’ means the quantity of goods produced (expressed in MWh for electricity, or in tonnes for other goods) within the boundaries of a production process; (2) ‘reporting period’ means a period that the operator of an installation has chosen to use as reference for the determination of embedded emissions; (3) ‘source stream’ means any of the following: (a) a specific fuel type, raw material or product giving rise to emissions of relevant greenhouse gases at one or more emission sources as a result of its consumption or production; (b) a specific fuel type, raw material or product containing carbon and included in the calculation of greenhouse gas emissions using a mass balance method; (4) ‘emission source’ means a separately identifiable part of an installation or a process within an installation, from which relevant greenhouse gases are emitted; (5) ‘uncertainty’ means a parameter, associated with the result of the determination of a quantity, that characterises the dispersion of the values that could reasonably be attributed to the particular quantity, including the effects of systematic as well as of random factors, expressed in per cent, and describes a confidence interval around the mean value comprising 95 % of inferred values taking into account any asymmetry of the distribution of values; (6) ‘calculation factors’ means net calorific value, emission factor, preliminary emission factor, oxidation factor, conversion factor, carbon content or biomass fraction; (7) ‘combustion emissions’ means greenhouse gas emissions occurring during the exothermic reaction of a fuel with oxygen; (8) ‘emission factor’ means the average emission rate of a greenhouse gas relative to the activity data of a source stream assuming complete oxidation for combustion and complete conversion for all other chemical reactions; (9) ‘oxidation factor’ means the ratio of carbon oxidised to CO 2 as a consequence ofcombustion to the total carbon contained in the fuel, expressed as a fraction, considering carbon monoxide (CO) emitted to the atmosphere as the molar equivalent amount of CO 2 ; (10) ‘conversion factor’ means the ratio of carbon emitted as CO 2 to the total carbon contained in the source stream before the emitting process takes place, expressed as a fraction, considering CO emitted to the atmosphere as the molar equivalent amount of CO 2 ; (11) ‘accuracy’ means the closeness of the agreement between the result of a measurement and the true value of the particular quantity or a reference value determined empirically using internationally accepted and traceable calibration materials and standard methods, taking into account both random and systematic factors; (12) ‘calibration’ means the set of operations, which establishes, under specified conditions, the relations between values indicated by a measuring instrument or measuring system, or values represented by a material measure or a reference material and the corresponding values of a quantity realised by a reference standard; (13) ‘conservative’ means that a set of assumptions is defined in order to ensure that no under-estimation of reported emissions or over-estimation of production of heat, electricity or goods occurs; (14) ‘biomass’ means the biodegradable fraction of products, waste and residues from biological origin from agriculture, including vegetal and animal substances, from forestry and related industries, including fisheries and aquaculture, as well as the biodegradable fraction of waste, including industrial and municipal waste of biological origin; (15) ‘waste’ means any substance or object which the holder discards or intends or is required to discard, excluding substances that have been intentionally modified or contaminated in order to meet this definition; (16) ‘residue’ means a substance that is not the end product(s) that a production process directly seeks to produce; it is not a primary aim of the production process and the process has not been deliberately modified to produce it; (17) ‘agricultural, aquaculture, fisheries and forestry residues’ means residues that are directly generated by agriculture, aquaculture, fisheries and forestry and that do not include residues from related industries or processing; (18) ‘legal metrological control’ means the control by a public authority or regulator of the measurement tasks intended for the field of application of a measuring instrument, for reasons of public interest, public health, public safety, public order, protection of the environment, the levying of taxes and duties, the protection of consumers and fair trading; (19) ‘data flow activities’ mean activities related to the acquisition, processing and handling of data that are needed to draft an emissions report from primary source data; (20) ‘measurement system’ means a complete set of measuring instruments and other equipment, such as sampling and data processing equipment, used to determine variables such as the activity data, the carbon content, the calorific value or the emission factor of the greenhouse gas emissions; (21) ‘net calorific value’ (NCV) means the specific amount of energy released as heat when a fuel or material undergoes complete combustion with oxygen under standard conditions, less the heat of vaporisation of any water formed; (22) ‘process emissions’ means greenhouse gas emissions other than combustion emissions occurring as a result of intentional and unintentional reactions between substances or their transformation, for a primary purpose other than the generation of heat, including from the following processes: (a) the chemical, electrolytic or pyrometallurgical reduction of metal compounds in ores, concentrates and secondary materials; (b) the removal of impurities from metals and metal compounds; (c) the decomposition of carbonates, including those used for flue gas cleaning; (d) chemical syntheses of products and intermediate products where the carbon bearing material participates in the reaction; (e) the use of carbon containing additives or raw materials; (f) the chemical or electrolytic reduction of metalloid oxides or non-metal oxides such as silicon oxides and phosphates; (23) ‘batch’ means an amount of fuel or material representatively sampled and characterised, and transferred as one shipment or continuously over a specific period of time; (24) ‘mixed fuel’ means a fuel which contains both biomass and fossil carbon; (25) ‘mixed material’ means a material which contains both biomass and fossil carbon; (26) ‘preliminary emission factor’ means the assumed total emission factor of a fuel or material based on the carbon content of its biomass fraction and its fossil fraction before multiplying it by the fossil fraction to produce the emission factor; (27) ‘fossil fraction’ means the ratio of fossil and inorganic carbon to the total carbon content of a fuel or material, expressed as a fraction; (28) ‘biomass fraction’ means the ratio of carbon stemming from biomass to the total carbon content of a fuel or material, expressed as a fraction; (29) ‘continuous emission measurement’ means a set of operations having the objective of determining the value of a quantity by means of periodic measurements, applying either measurements in the stack or extractive procedures with a measuring instrument located close to the stack, whilst excluding measurement methodologies based on the collection of individual samples from the stack; (30) ‘inherent CO 2 ’ means CO 2 which is part of a source stream; (31) ‘fossil carbon’ means inorganic and organic carbon that is not biomass; (32) ‘measurement point’ means the emission source for which continuous emission measurement systems (CEMS) are used for emission measurement, or the cross-section of a pipeline system for which the CO 2 flow is determined using continuous measurement systems; (33) ‘fugitive emissions’ means irregular or unintended emissions from sources that are not localised, or too diverse or too small to be monitored individually; (34) ‘standard conditions’ means temperature of 273,15 K and pressure conditions of 101 325 Pa defining normal cubic metres (Nm 3 ); (35) ‘proxy data’ means annual values which are empirically substantiated or derived from accepted sources and which an operator uses to substitute a data set for the purpose of ensuring complete reporting when it is not possible to generate all the required data or factors in the applicable monitoring methodology; (36) ‘measurable heat’ means a net heat flow transported through identifiable pipelines or ducts using a heat transfer medium, such as, in particular, steam, hot air, water, oil, liquid metals and salts, for which a heat meter is or could be installed; (37) ‘heat meter’ means a thermal energy meter or any other device to measure and record the amount of thermal energy produced based upon flow volumes and temperatures; (38) ‘non-measurable heat’ means all heat other than measurable heat; (39) ‘waste gas’ means a gas containing incompletely oxidised carbon in a gaseous state under standard conditions which is a result of any of the processes listed in point (22); (40) ‘production process’ means the chemical or physical processes carried out in parts of an installation to produce goods under an aggregated goods category defined in Table 1 of Section 2 of this Annex, and its specified system boundaries regarding inputs, outputs and corresponding emissions; (41) ‘production route’ means a specific technology used in a production process to produce goods under an aggregated goods category; (42) ‘data set’ means one type of data, either at installation level or production process level as relevant in the circumstances, as any of the following: (a) the amount of fuels or materials consumed or produced by a production process as relevant for the calculation-based methodology, expressed in terajoules, mass in tonnes, or for gases as volume in normal cubic metres, as appropriate, including for waste gases; (b) a calculation factor; (c) net quantity of measurable heat, and the relevant parameters required for determining this quantity, in particular: — mass flow of heat transfer medium, and — enthalpy of transmitted and returned heat transfer medium, as specified by composition, temperature, pressure and saturation; (d) quantities of non-measurable heat, specified by the relevant quantities of fuels used for producing the heat, and the net calorific value (NCV) of the fuel mix; (e) quantities of electricity; (f) quantities of CO 2 transferred between installations; (g) quantities of precursors received from outside the installation, and their relevant parameters, such as country of origin, used production route, specific direct and indirect emissions, carbon price due; (h) parameters relevant for a carbon price due; (43) ‘minimum requirements’ means monitoring methods using the minimum efforts allowed for determining data in order to result in emission data acceptable for the purpose of Regulation (EU) 2023/956; (44) ‘recommended improvements’ means monitoring methods which are proven means to ensure that data are more accurate or less prone to mistakes than by mere application of minimum requirements, and which may be chosen on a voluntary basis; (45) ‘misstatement’ means an omission, misrepresentation or error in the operator’s reported data, not considering the uncertainty permissible for measurements and laboratory analyses; (46) ‘material misstatement’ means a misstatement that, in the opinion of the verifier, individually or when aggregated with other misstatements, exceeds the materiality level or could affect the treatment of the operator’s report by the competent authority; (47) ‘reasonable assurance’ means a high but not absolute level of assurance, expressed positively in the verification opinion, as to whether the operator’s report subject to verification is free from material misstatement; (48) ‘eligible monitoring, reporting and verification system’ means the monitoring, reporting and verification systems where the installation is established for the purpose of a carbon pricing scheme, or compulsory emission monitoring schemes, or an emission monitoring scheme at the installation which can include verification by an accredited verifier, in accordance with Article 4(2) of this Regulation. 2. MAPPING OF CN CODES TO AGGREGATED GOODS CATEGORIES Table 1 of this Annex defines aggregated goods categories for each CN code listed in Annex I to Regulation (EU) 2023/956. Those categories are used for the purpose of defining system boundaries of production processes for the determination of embedded emissions corresponding to the goods listed in Annex I to Regulation (EU) 2023/956. Table 1 Mapping of CN codes to aggregated goods categories CN code Aggregated goods category Greenhouse gas Cement 2507 00 80 – Other kaolinic clays Calcined clay Carbon dioxide 2523 10 00 – Cement clinkers Cement clinker Carbon dioxide 2523 21 00 – White Portland cement, whether or not artificially coloured 2523 29 00 – Other Portland cement 2523 90 00 – Other hydraulic cements Cement Carbon dioxide 2523 30 00 – Aluminous cement Aluminous cement Carbon dioxide Electricity 2716 00 00 – Electrical energy Electricity Carbon dioxide Fertiliser 2808 00 00 – Nitric acid; sulphonitric acids Nitric acid Carbon dioxide and nitrous oxide 3102 10 – Urea, whether or not in aqueous solution Urea Carbon dioxide 2814 – Ammonia, anhydrous or in aqueous solution Ammonia Carbon dioxide 2834 21 00 – Nitrates of potassium 3102 – Mineral or chemical fertilisers, nitrogenous except 3102 10 (Urea) 3105 – Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus, and potassium; other fertilisers — Except: 3105 60 00 – Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium Mixed fertilisers Carbon dioxide and nitrous oxide Iron and Steel 2601 12 00 – Agglomerated iron ores and concentrates, other than roasted iron pyrites Sintered Ore Carbon dioxide 7201 – Pig iron and spiegeleisen in pigs, blocks, or other primary forms Some products under 7205 (Granules and powders, of pig iron, spiegeleisen, iron, or steel) may be covered here Pig Iron Carbon dioxide 7202 1 – Ferro-manganese FeMn Carbon dioxide 7202 4 – Ferro-chromium FeCr Carbon dioxide 7202 6 – Ferro-nickel FeNi Carbon dioxide 7203 – Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products DRI Carbon dioxide 7206 – Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203 ) 7207 – Semi-finished products of iron or non-alloy steel 7218 – Stainless steel in ingots or other primary forms; semi-finished products of stainless steel 7224 – Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel Crude steel Carbon dioxide 7205 – Granules and powders, of pig iron, spiegeleisen, iron or steel (if not covered under category pig iron) 7208 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated 7209 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated 7210 – Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated 7211 – Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated 7212 – Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated 7213 – Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel 7214 – Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling 7215 – Other bars and rods of iron or non-alloy steel 7216 – Angles, shapes and sections of iron or non-alloy steel 7217 – Wire of iron or non-alloy steel 7219 – Flat-rolled products of stainless steel, of a width of 600 mm or more 7220 – Flat-rolled products of stainless steel, of a width of less than 600 mm 7221 – Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel 7222 – Other bars and rods of stainless steel; angles, shapes and sections of stainless steel 7223 – Wire of stainless steel 7225 – Flat-rolled products of other alloy steel, of a width of 600 mm or more 7226 – Flat-rolled products of other alloy steel, of a width of less than 600 mm 7227 – Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel 7228 – Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel 7229 – Wire of other alloy steel 7301 – Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel 7302 – Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails 7303 – Tubes, pipes and hollow profiles, of cast iron 7304 – Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel 7305 – Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel 7306 – Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel 7307 – Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel 7308 – Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel 7309 – Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7310 – Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7311 – Containers for compressed or liquefied gas, of iron or steel 7318 – Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel 7326 – Other articles of iron or steel Iron or steel products Carbon dioxide Aluminium 7601 – Unwrought aluminium Unwrought aluminium Carbon dioxide and perfluorocarbons 7603 – Aluminium powders and flakes 7604 – Aluminium bars, rods and profiles 7605 – Aluminium wire 7606 – Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm 7607 – Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm 7608 – Aluminium tubes and pipes 7609 00 00 – Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) 7610 – Aluminium structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures 7611 00 00 – Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7612 – Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 7613 00 00 – Aluminium containers for compressed or liquefied gas 7614 – Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated 7616 – Other articles of aluminium Aluminium products Carbon dioxide and perfluorocarbons Chemicals 2804 10 000 – Hydrogen Hydrogen Carbon dioxide 3. PRODUCTION ROUTES, SYSTEM BOUNDARIES AND RELEVANT PRECURSORS 3.1. Cross-sectoral rules For determining the activity level (quantity produced) of the goods, which is used as denominator in Equations 50 and 51 (Section F.1 of Annex III), the monitoring rules of Section F.2 of Annex III shall apply. Where several production routes are used in the same installation for producing goods falling under the same CN code, and where those production routes are assigned separate production processes, the embedded emissions of those goods shall be calculated separately for each production route. For the monitoring of direct emissions, all emission sources and source streams associated with the production process shall be monitored, taking into account specific requirements laid down in Sections 3.2 to 3.19 of this Annex, where relevant, and the rules laid down in Annex III. Where CO 2 capture is used, the rules of Section B.8.2 of Annex III shall apply. For the monitoring of indirect emissions, the total electricity consumption of each production process shall be determined, within the system boundaries defined in line with Sections 3.2 to 3.19 of this Annex and in accordance with Section A.4 of Annex III, where relevant. The relevant emission factor of electricity shall be determined in accordance with Section D.2 of Annex III. If relevant precursors are specified, they refer to the corresponding aggregated goods categories. 3.2. Calcined clay 3.2.1. Special provisions Clays falling under CN code 2507 00 80 which are not calcined, are assigned embedded emissions of zero. They shall be included in the CBAM report, but no additional information from the producer of the clay is required. The following provisions relate only to clays falling under that CN code and that are calcined. 3.2.2. Production route For calcined clay, direct emissions monitoring shall encompass: — All processes directly or indirectly linked to the production processes, such as raw material preparation, mixing, drying, and calcining, and flue gas cleaning. — CO 2 emissions from the combustion of fuels as well as from raw materials, where relevant. Relevant precursors: none. 3.3. Cement clinker 3.3.1. Special provisions No distinction shall be made between grey and white cement clinker. 3.3.2. Production route For cement clinker, direct emissions monitoring shall encompass: — Calcination of limestone and other carbonates in the raw materials, conventional fossil kiln fuels, alternative fossil-based kiln fuels and raw materials, biomass kiln fuels (such as waste-derived fuels), non-kiln fuels, non-carbonate carbon content of limestone and shales, or alternative raw materials such as fly ash used in the raw meal in the kiln and raw materials used for flue gas scrubbing. — The additional provisions of Section B.9.2 of Annex III shall apply. Relevant precursors: none. 3.4. Cement 3.4.1. Special provisions None. 3.4.2. Production route For cement, direct emissions monitoring shall encompass: — All CO 2 emissions from fuel combustion, where relevant for drying of materials. Relevant precursors: — Cement clinker; — Calcined clay, if used in the process. 3.5. Aluminous cement 3.5.1. Special provisions None. 3.5.2. Production route For aluminous cement, direct emissions monitoring shall encompass: — All CO 2 emissions from fuel combustion directly or indirectly linked to the process. — Process emissions from carbonates in raw materials, if applicable, and flue gas cleaning. Relevant precursors: none. 3.6. Hydrogen 3.6.1. Special provisions Only the production of pure hydrogen or mixtures of hydrogen with nitrogen usable in ammonia production shall be considered. Not covered are the production of synthesis gas or of hydrogen within refineries or organic chemical installations, where hydrogen is exclusively used within those plants and not used for the production of goods listed in Annex I to Regulation (EU) 2023/956. 3.6.2. Production routes 3.6.2.1. Steam reforming and partial oxidation For those production routes, direct emissions monitoring shall encompass: — All processes directly or indirectly linked to hydrogen production, and flue gas cleaning. — All fuels used in the hydrogen production process irrespective of their energetic or non-energetic use, and fuels used for other combustion processes including for the purpose of producing hot water or steam. Relevant precursors: none. 3.6.2.2. Electrolysis of water For that production route, direct emissions monitoring shall encompass, if relevant: — All emissions from fuel use directly or indirectly linked to the hydrogen production process and from flue gas cleaning. Indirect emissions: Where the produced hydrogen has been certified to comply with Commission Delegated Regulation (EU) 2023/1184 ( 1 ) , an emission factor of zero for the electricity may be used. In all other cases, the rules on indirect embedded emissions (Section D of Annex III) shall apply. Relevant precursors: none. Attribution of emissions to products: Where the co-produced oxygen is vented, all emissions of the production process shall be attributed to hydrogen. Where by-product oxygen is used in other production processes at the installation or sold, and where direct or indirect emissions are not equal to zero, the emissions of the production process shall be attributed to hydrogen based on molar proportions using the following equation: (Equation 1) Where: are either the direct or indirect emissions attributed to hydrogen produced over the reporting period, expressed in tonnes of CO 2 ; Em total are either the direct or indirect emissions of the whole production process over the reporting period, expressed in tonnes of CO 2 ; is the mass of oxygen sold or used in the installation over the reporting period, expressed in tonnes; is the mass of oxygen produced over the reporting period, expressed in tonnes; is the mass of hydrogen produced over the reporting period, expressed in tonnes; is the molar mass of O 2 (31,998 kg/kmol); and is the molar mass of H 2 (2,016 kg/kmol). 3.6.2.3. Chlor-Alkali electrolysis and production of chlorates For those production routes, direct emissions monitoring shall encompass, if relevant: — All emissions from fuel use directly or indirectly linked to the hydrogen production process and from flue gas cleaning. Indirect emissions: Where the produced hydrogen has been certified to comply with Delegated Regulation (EU) 2023/1184, an emission factor of zero for the electricity may be used. In all other cases, the rules on indirect embedded emissions (Section D of Annex III) shall apply. Relevant precursors: none. Attribution of emissions to products: As hydrogen is considered a by-product in this production process, only a molar proportion of the overall process shall be attributed to the fraction of hydrogen sold or used as a precursor within the installation. Provided that direct or indirect emissions are not equal to zero, the emissions of the production process shall be attributed to hydrogen used or sold using the following equations: Chlor-Alkali electrolysis: (Equation 2) Production of Sodium Chlorate: (Equation 3) Where: are either the direct or indirect emissions attributed to hydrogen sold or used as precursor over the reporting period, expressed in tonnes of CO 2 ; Em total are either the direct or indirect emissions of the production process over the reporting period, expressed in tonnes of CO 2 ; is the mass of hydrogen sold or used as precursor over the reporting period, expressed in tonnes; is the mass of hydrogen produced over the reporting period, expressed in tonnes; is the mass of chlorine produced over the reporting period, expressed in tonnes; m NaOH , prod is the mass of sodium hydroxide (caustic soda) produced over the reporting period, expressed in tonnes, calculated as 100 % NaOH; is the mass of sodium chlorate produced over the reporting period, expressed in tonnes, calculated as 100 % NaClO 3 ; is the molar mass of H 2 (2,016 kg/kmol); is the molar mass of Cl 2 (70,902 kg/kmol); M NaOH is the molar mass of NaOH (39,997 kg/kmol); and is the molar mass of NaClO 3 (106,438 kg/kmol). 3.7. Ammonia 3.7.1. Special provisions Both hydrous and anhydrous ammonia shall be reported jointly as 100 % ammonia. Where CO 2 from ammonia production is used as feedstock for the production of urea or other chemicals, point (b) of Section B.8.2 of Annex III shall apply. Where a deduction of CO 2 is allowed according to that section and where it would lead to negative specific embedded direct emissions of ammonia, the specific embedded direct emissions of ammonia shall be zero. 3.7.2. Production routes 3.7.2.1. Haber-Bosch process with steam reforming of natural gas or biogas For that production route, direct emissions monitoring shall encompass: — All fuels directly or indirectly linked to ammonia production, and materials used for flue gas cleaning. — All fuels shall be monitored, irrespective of whether used as energetic or non-energetic input. — Where biogas is used, the provisions of Section B.3.3 of Annex III shall be applied. — Where hydrogen from other production routes is added to the process, it shall be treated as a precursor with its own embedded emissions. Relevant precursors: separately produced hydrogen, if used in the process. 3.7.2.2. Haber-Bosch process with gasification of coal or other fuels That route applies where hydrogen is produced by gasification of coal, heavy refinery fuels or other fossil feedstock. Input materials may include biomass, for which the provisions of Section B.3.3 of Annex III shall be taken into account. For that production route, direct emissions monitoring shall encompass: — All fuels directly or indirectly linked to ammonia production, and materials used for flue gas cleaning. — Each fuel input shall be monitored as one fuel stream, irrespective of whether it is used as energetic or non-energetic input. — Where hydrogen from other production routes is added to the process, it shall be treated as a precursor with its own embedded emissions. Relevant precursors: separately produced hydrogen, if used in the process. 3.8. Nitric acid 3.8.1. Special provisions Amounts of nitric acid produced shall be monitored and reported as 100 % nitric acid. 3.8.2. Production route For nitric acid, direct emissions monitoring shall encompass: — CO 2 from all fuels directly or indirectly linked to nitric acid production, and materials used for flue gas cleaning; — N 2 O emissions from all sources emitting N 2 O from the production process, including unabated and abated emissions. Any N 2 O emissions from the combustion of fuels are excluded from monitoring. Relevant precursors: Ammonia (as 100 % ammonia). 3.9. Urea 3.9.1. Special provisions Where the CO 2 used in the production of urea stems from ammonia production, it is accounted for as subtraction in the embedded emissions of ammonia as precursor of urea, if the provisions of Section 3.7 of this Annex allow such deduction. However, where ammonia produced without direct fossil CO 2 emissions is used as a precursor, the used CO 2 may be deducted from the direct emissions of the installation producing the CO 2 , provided that the delegated act adopted pursuant to Article 12(3b) of Directive 2003/87/EC defines urea production as a case where CO 2 is permanently chemically bound so that it does not enter the atmosphere under normal use, including any normal activity taking place after the end of the life of the product. Where such deduction would lead to negative specific direct embedded emissions of urea, the specific direct embedded emissions of urea shall be zero. 3.9.2. Production route For urea, direct emissions monitoring shall encompass: — CO 2 from all fuels directly or indirectly linked to urea production, and materials used for flue gas cleaning. — Where CO 2 is received from another installation as process input, the CO 2 received and not bound in urea shall be considered an emission, if not already counted as emission of the installation where the CO 2 was produced, under an eligible monitoring, reporting and verification system. Relevant precursors: Ammonia (as 100 % ammonia). 3.10. Mixed fertilisers 3.10.1. Special provisions This section applies to the production of all kinds of nitrogen containing fertilisers, including ammonium nitrate, calcium ammonium nitrate, ammonium sulphate, ammonium phosphates, urea ammonium nitrate solutions, as well as nitrogen-phosphorus (NP), nitrogen-potassium (NK) and nitrogen-phosphorus-potassium (NPK) fertilisers. All kinds of operations are included such as mixing, neutralisation, granulation, prilling, irrespective of whether only physical mixing or chemical reactions take place. The amounts of different nitrogen compounds contained in the final product shall be recorded in accordance with Regulation (EU) 2019/1009 of the European Parliament and of the Council ( 2 ) : — content of N as ammonium (NH 4 + ); — content of N as nitrate (NO 3 – ); — content of N as Urea; — content of N in other (organic) forms. The direct and indirect emissions of the production processes falling under this aggregated goods category may be determined for the whole reporting period and attributed to all mixed fertilisers on a pro-rata basis per tonne of final product. For each fertiliser grade, embedded emissions shall be calculated separately taking into account the relevant mass of precursors used and applying average embedded emissions during the reporting period for each of the precursors. 3.10.2. Production route For mixed fertilisers, direct emissions monitoring shall encompass: — CO 2 from all fuels directly or indirectly linked to fertiliser production, such as fuels used in driers and for heating input materials, and materials used for flue gas cleaning. Relevant precursors: — ammonia (as 100 % ammonia), if used in the process; — nitric acid (as 100 % nitric acid), if used in the process; — urea, if used in the process; — mixed fertilisers (in particular salts containing ammonium or nitrate), if used in the process. 3.11. Sintered ore 3.11.1. Special provisions This aggregated goods category includes all kinds of iron ore pellet production (for sale of pellets as well as for direct use in the same installation) and sinter production. To the extent covered by CN code 2601 12 00, also iron ores used as precursors for ferro-chromium (FeCr), ferro-manganese (FeMn) or ferro-nickel (FeNi) may be covered. 3.11.2. Production route For sintered ore, direct emissions monitoring shall encompass: — CO 2 from process materials such as limestone and other carbonates or carbonatic ores; — CO 2 from all fuels including coke, waste gases such as coke oven gas, blast furnace gas or converter gas; directly or indirectly linked to the production process, and materials used for flue gas cleaning. Relevant precursors: none. 3.12. FeMn (Ferro-Manganese), FeCr (Ferro-Chromium) and FeNi (Ferro-Nickel) 3.12.1. Special provisions This process covers only the production of the alloys identified under CN codes 7202 1, 7202 4 and 7202 6. Other iron materials with significant alloy content such as spiegeleisen are not covered. NPI (nickel pig iron) is included if the nickel content is greater than 10 %. Where waste gases or other flue gases are emitted without abatement, CO contained in the waste gas shall be considered as the molar equivalent of CO 2 emissions. 3.12.2. Production route For FeMn, FeCr and FeNi, direct emissions monitoring shall encompass: — CO 2 emissions caused by fuel inputs, irrespective of whether they are used for energetic or non-energetic use; — CO 2 emissions from process inputs such as limestone and from flue gas cleaning; — CO 2 emissions from the consumption of electrodes or electrode pastes; — Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III. Relevant precursors: Sintered ore, if used in the process. 3.13. Pig iron 3.13.1. Special provisions This aggregated goods category includes non-alloyed pig iron from blast furnaces as well as alloy-containing pig irons (e.g. spiegeleisen), irrespective of the physical form (e.g. ingots, granules). NPI (nickel pig iron) is included if the nickel content is lower than 10 %. In integrated steel plants, liquid pig iron (‘hot metal’) directly charged to the oxygen converter is the product which separates the production process for pig iron from the production process of crude steel. Where the installation does not sell or transfer pig iron to other installations, there is no need to monitor emissions from pig iron production separately. A common production process including crude steel making and, subject to the rules of Section A.4 of Annex III, further downstream production may be defined. 3.13.2. Production routes 3.13.2.1. Blast furnace route For that production route, direct emissions monitoring shall encompass: — CO 2 from fuels and reducing agents such as coke, coke dust, coal, fuel oils, plastic wastes, natural gas, wood wastes, charcoal, as well as from waste gases such as coke oven gas, blast furnace gas or converter gas. — Where biomass is used, the provisions of Section B.3.3 of Annex III shall be taken into account. — CO 2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning. — Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III. Relevant precursors: — sintered ore; — pig iron or direct reduced iron (DRI) from other installations or production processes, if used in the process; — FeMn, FeCr, FeNi if used in the process; — hydrogen if used in the process. 3.13.2.2. Smelting reduction For this production route, direct emissions monitoring shall encompass: — CO 2 from fuels and reducing agents such as coke, coke dust, coal, fuel oils, plastic wastes, natural gas, wood wastes, charcoal, waste gases from the process or converter gas, etc. — Where biomass is used, the provisions of Section B.3.3 of Annex III shall be taken into account. — CO 2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning. — Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III. Relevant precursors: — sintered ore; — pig iron or DRI from other installations or production processes, if used in the process; — FeMn, FeCr, FeNi if used in the process; — hydrogen if used in the process. 3.14. DRI (Direct Reduced Iron) 3.14.1. Special provisions There is only one production route defined, although different technologies may use different qualities of ores, which may require pelletisation or sintering, and different reducing agents (natural gas, diverse fossil fuels or biomass, hydrogen). Therefore, precursors sintered ore or hydrogen may be relevant. As products, iron sponge, hot briquetted iron (HBI) or other forms of direct reduced iron may be relevant, including DRI which is immediately fed to electric arc furnaces or other downstream processes. Where the installation does not sell or transfer DRI to other installations, there is no need to monitor emissions from DRI production separately. A common production process including steel making and, subject to the rules of Section A.4 of Annex III, further downstream production may be used. 3.14.2. Production route For this production route, direct emissions monitoring shall encompass: — CO 2 from fuels and reducing agents such as natural gas, fuel oils, waste gases from the process or converter gas, etc.; — Where biogas or other forms of biomass are used, the provisions of Section B.3.3 of Annex III shall be taken into account; — CO 2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning; — Carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III. Relevant precursors: — sintered ore, if used in the process; — hydrogen, if used in the process; — pig iron or DRI from other installations or production processes, if used in the process; — FeMn, FeCr, FeNi if used in the process. 3.15. Crude steel 3.15.1. Special provisions The system boundaries shall cover all necessary activities and units for obtaining crude steel: — If the process starts from hot metal (liquid pig iron), the system boundaries shall include the basic oxygen converter, vacuum degassing, secondary metallurgy, argon oxygen decarburisation/vacuum oxygen decarburisation, continuous casting or ingot casting, where relevant hot-rolling or forging, and all necessary auxiliary activities such as transfers, re-heating and flue gas cleaning; — If the process uses an electric arc furnace, the system boundaries shall include all relevant activities and units such as the electric arc furnace itself, secondary metallurgy, vacuum degassing, argon oxygen decarburisation/vacuum oxygen decarburisation, continuous casting or ingot casting, where relevant hot-rolling or forging, and all necessary auxiliary activities such as transfers, heating of raw materials and equipment, re-heating and flue gas cleaning; — Only primary hot-rolling and rough shaping by forging to obtain the semi-finished products under CN codes 7207, 7218 and 7224 are included in this aggregated goods category. All other rolling and forging processes are included in the aggregated goods category ‘iron or steel products’. 3.15.2. Production routes 3.15.2.1. Basic oxygen steelmaking For that production route, direct emissions monitoring shall encompass: — CO 2 from fuels such as coal, natural gas, fuel oils, waste gases such as blast furnace gas, coke oven gas or converter gas, etc. — CO 2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning. — Carbon entering the process in scrap, alloys, graphite, etc. and carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III. Relevant precursors: — pig iron, DRI, if used in the process; — FeMn, FeCr, FeNi if used in the process; — crude steel from other installations or production processes if used in the process. 3.15.2.2. Electric arc furnace For that production route, direct emissions monitoring shall encompass: — CO 2 from fuels such as coal, natural gas, fuel oils, as well as from waste gases such as blast furnace gas, coke oven gas or converter gas. — CO 2 from the consumption of electrodes and electrode pastes. — CO 2 from process materials such as limestone, magnesite, and other carbonates, carbonatic ores; materials for flue gas cleaning. — Carbon entering the process, e.g. in the form of scrap, alloys and graphite, and carbon remaining in the product or in slags or wastes is taken into account by using a mass balance method in accordance with Section B.3.2 of Annex III. Relevant precursors: — pig iron, DRI, if used in the process; — FeMn, FeCr, FeNi if used in the process; — crude steel from other installations or production processes if used in the process. 3.16. Iron or steel products 3.16.1. Special provisions Subject to the rules of Section A.4 of Annex III and Sections 3.11 to 3.15 of this Annex, the production process for iron or steel products may apply to the following cases: — System boundaries cover as one process all steps of an integrated steel plant from production of pig iron or DRI, crude steel, semi-finished products as well as final steel products under the CN codes listed in Section 2 of this Annex. — System boundaries cover the production of crude steel, semi-finished products and final steel products under the CN codes listed in Section 2 of this Annex. — System boundaries cover the production of final steel products under the CN codes listed in Section 2 of this Annex starting from crude steel, semi-finished products or from other final steel products under the CN codes listed in Section 2 which are either received from other installations or produced within the same installation but under a separate production process. Double counting or gaps in the monitoring of production processes of an installation shall be avoided. The following production steps shall be covered by the production process of ‘iron or steel products’: — All production steps for producing goods covered by the CN codes given in Section 2 of this Annex for the aggregated goods category ‘iron or steel products’, which are not already covered by separate production processes for pig iron, DRI or crude steel, as required by Sections 3.11 to 3.15 of this Annex and as applied at the installation. — All production steps applied at the installation, starting from crude steel, including, but not limited to: re-heating, re-melting, casting, hot rolling, cold rolling, forging, pickling, annealing, plating, coating, galvanising, wire drawing, cutting, welding, finishing. For products that contain more than 5 % by mass of other materials, e.g. insulation materials in CN code 7309 00 30, only the mass of iron or steel shall be reported as the mass of the goods produced. 3.16.2. Production route For iron or steel products, direct emissions monitoring shall encompass: — All CO 2 emissions from combustion of fuels and process emissions from flue gas treatment, related to production steps applied at the installation, including, but not limited to: re-heating, re-melting, casting, hot rolling, cold rolling, forging, pickling, annealing, plating, coating, galvanising, wire drawing, cutting, welding and finishing of iron or steel products. Relevant precursors: — crude steel, if used in the process; — pig iron, DRI, if used in the process; — FeMn, FeCr, FeNi, if used in the process; — iron or steel products, if used in the process. 3.17. Unwrought aluminium 3.17.1. Special provisions This aggregated goods category includes non-alloyed as well as alloyed aluminium, in physical form typical for unwrought metals, such as ingots, slabs, billets or granules. In integrated aluminium plants, liquid aluminium directly charged to the production of aluminium products is included, too. Where the installation does not sell or transfer unwrought aluminium to other installations, there is no need to monitor emissions from unwrought aluminium production separately. A common production process including unwrought aluminium and, subject to the rules of Section A.4 of Annex III, further processes to produce aluminium products may be defined. 3.17.2. Production routes 3.17.2.1. Primary (electrolytic) smelting For that production route, direct emissions monitoring shall encompass: — CO 2 emissions from the consumption of electrodes or electrode pastes. — CO 2 emissions from any fuels used (e.g. for drying and pre-heating of raw materials, heating of electrolysis cells, heating required for casting). — CO 2 emissions from any flue gas treatment, from soda ash or limestone if relevant. — Perfluorocarbon emissions caused by anode effects monitored in accordance with Section B.7 of Annex III. Relevant precursors: none. 3.17.2.2. Secondary melting (recycling) Secondary melting (recycling) of aluminium uses aluminium scrap as main input. However, where unwrought aluminium from other sources is added, it is treated like a precursor. Furthermore, where the product of this process contains more than 5 % alloying elements, the embedded emissions of the product shall be calculated as if the mass of alloying elements were unwrought aluminium from primary smelting. For that production route, direct emissions monitoring shall encompass: — CO 2 emissions from any fuels used for drying and pre-heating of raw materials, used in melting furnaces, in pre-treatment of scrap such as de-coating and de-oiling, and combustion of the related residues, and fuels required for casting of ingots, billets or slabs; — CO 2 emissions from any fuels used in associated activities such as treatment of skimmings and slag recovery; — CO 2 emissions from any flue gas treatment, from soda ash or limestone if relevant. Relevant precursors: — Unwrought aluminium from other sources, if used in the process. 3.18. Aluminium products 3.18.1. Special provisions Subject to the rules of Section A.4 of Annex III and Section 3.17 of this Annex, the production process for aluminium products may apply to the following cases: — System boundaries cover as one process all steps of an integrated aluminium plant from production of unwrought aluminium to semi-finished products as well as aluminium products under the CN codes listed in Section 2 of this Annex. — System boundaries cover the production of aluminium products under the CN codes listed in Section 2 of this Annex starting from semi-finished products or from other aluminium products under the CN codes listed in Section 2 which are either received from other installations or produced within the same installation but under a separate production process. Double counting or gaps in the monitoring of production processes of an installation shall be avoided. The following production steps shall be covered by the production process of ‘aluminium products’: — All production steps for producing goods covered by the CN codes given in Section 2 of this Annex for the aggregated goods category ‘aluminium products’, which are not already covered by separate production processes for unwrought aluminium, as required by Section 3.17 of this Annex and as applied at the installation. — All production steps applied at the installation, starting from unwrought aluminium, including, but not limited to: re-heating, re-melting, casting, rolling, extruding, forging, coating, galvanising, wire drawing, cutting, welding, finishing. Where the product contains more than 5 % by mass alloying elements, the embedded emissions of the product are shall be calculated as if the mass of alloying elements were unwrought aluminium from primary smelting. For products that contain more than 5 % by mass of other materials, e.g. insulation materials in CN code 7611 00 00 only the mass of aluminum shall be reported as the mass of the goods produced. 3.18.2. Production route For aluminium products, direct emissions monitoring shall encompass: — All CO 2 emissions from fuel consumption in processes forming aluminium products, and flue gas cleaning. Relevant precursors: — unwrought aluminium, if used in the production process (treat primary and secondary aluminium separately, if data is known); — aluminium products, if used in the production process. 3.19. Electricity 3.19.1. Special provisions For electricity, only direct emissions shall be monitored and reported. The emission factor for electricity shall be determined in accordance with Section D.2 of Annex III. 3.19.2. Production routes For electricity, direct emissions monitoring shall encompass: — Any combustion emissions and process emissions from flue gas treatment. Relevant precursors: none. ( 1 ) Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a Union methodology setting out detailed rules for the production of renewable liquid and gaseous transport fuels of non-biological origin ( OJ L 157, 20.6.2023, p. 11 ). ( 2 ) Regulation (EU) 2019/1009 of the European Parliament and of the Council of 5 June 2019 laying down rules on the making available on the market of EU fertilising products and amending Regulations (EC) No 1069/2009 and (EC) No 1107/2009 and repealing Regulation (EC) No 2003/2003 ( OJ L 170, 25.6.2019, p. 1 ).