Aluminium — CN Code 76

CBAM for Aluminium Exporters
in India

Indian aluminium faces the highest CBAM impact of any sector — up to $1,600 per tonne — driven by coal-heavy power for smelting. This guide covers everything Indian aluminium manufacturers need to know, from CN code 76 products to emission calculations and how to save crores with actual data.

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$1,500–1,600

CBAM cost per tonne (coal power)

54%

Indian smelting on coal power

14–18

tCO₂/tonne (coal-based smelting)

30–40%

Savings with actual vs default values

Why Indian Aluminium Faces the Highest CBAM Impact

The Electricity Problem

Primary aluminium smelting requires ~14,000–15,000 kWh of electricity per tonne — making it one of the most electricity-intensive manufacturing processes. In the EU, aluminium smelters predominantly use hydroelectric power (Norway, Iceland), resulting in very low Scope 2 emissions.

In India, 54% of smelting capacity runs on coal-based captive thermal power. India's grid emission factor (~0.7–0.9 tCO₂/MWh) means that electricity alone contributes 10–14 tCO₂ per tonne of aluminium. This single factor makes Indian primary aluminium 2–3x more emission-intensive than European production.

14–18 tCO₂/t

Indian Smelter (Coal Power)

4–7 tCO₂/t

Indian Smelter (Hydro Power)

2–4 tCO₂/t

EU Smelter (Hydro Avg)

Aluminium Products Covered Under CBAM

All aluminium products under CN code 76 are covered. If you export any of these to the EU, CBAM compliance is mandatory.

CN Code	Product Category	CBAM Risk	Note for Indian Exporters
7601	Unwrought Aluminium (Primary & Secondary)	Very High	Primary smelting has the highest emissions — directly from electrolysis and coal-based power
7603	Aluminium Powders & Flakes	High	Produced from primary or secondary aluminium — precursor emissions must be tracked
7604	Aluminium Bars, Rods & Profiles (Extrusions)	High	Major Indian export category — extrusion plants in Bhiwadi, Chennai, Silvassa
7605	Aluminium Wire	Medium	Conductor-grade wire for electrical applications — significant EU demand
7606	Aluminium Plates, Sheets & Strip	High	Flat-rolled products — includes can stock, building sheets, automotive panels
7607	Aluminium Foil	High	Packaging foil — India is a major global exporter with growing EU market share
7608	Aluminium Tubes & Pipes	Medium	Industrial and HVAC applications — growing export segment
7609–7616	Aluminium Structures, Containers, Articles	Medium	Fabricated aluminium products including doors, windows, tanks, cables

Emission Intensity by Production Type

All values in tCO₂ per tonne of aluminium. Savings calculated per 1,000 tonnes at ~€80/tonne CO₂.

Production Type	India Typical	EU Average	EU Default Value	Savings with Actuals
Primary Smelting (Coal Power)	14.0–18.0	6.0–8.0	20.0+	₹1.2–1.8 Cr
Primary Smelting (Captive Hydro/Renewable)	4.0–7.0	2.0–4.0	20.0+	₹2.5–3.8 Cr
Secondary (Scrap-Based)	0.5–1.5	0.3–0.8	3.0+	₹48–72 lakh
Extrusion/Fabrication	1.0–3.0	0.5–1.5	5.0+	₹60–96 lakh

Critical: Hydro-Powered Smelters Have a Huge Advantage

Indian smelters using hydroelectric power (like Hindalco's Hirakud plant) have emissions of 4–7 tCO₂/tonne — comparable to EU producers. But if you don't submit verified actual data, the EU defaults assume coal-based production at 20+ tCO₂/tonne. You could be overpaying by ₹2.5–3.8 crore per 1,000 tonnes. CarbonSettle ensures your clean energy advantage is properly documented and verified.

Major Indian Aluminium Hubs Affected

CarbonSettle serves aluminium manufacturers across all major Indian production centers — from primary smelters to downstream extrusion and foil producers.

Angul-Jharsuguda

Very High Risk

Odisha — Primary smelting (Vedanta, NALCO)

India's largest aluminium production belt — captive coal power drives high Scope 2

Korba

Very High Risk

Chhattisgarh — Bharat Aluminium Company (BALCO)

Vedanta-owned smelter with captive coal-based thermal power

Hirakud

High Risk

Odisha — Hindalco primary smelting

Hydro-electric powered smelter — lower Scope 2 than coal-based plants

Renukoot

High Risk

Uttar Pradesh — Hindalco integrated complex

One of India's oldest aluminium smelters with integrated operations

Silvassa-Daman

Medium Risk

Dadra & Nagar Haveli — Extrusion and fabrication hub

100+ aluminium extrusion units — major EU export hub for profiles and sections

Chennai-Madurai

Medium Risk

Tamil Nadu — Foil, sheets, auto components

Growing cluster for aluminium flat products and automotive components

Step-by-Step Aluminium CBAM Compliance

CarbonSettle's end-to-end service handles every step — especially the complex Scope 2 electricity calculations that determine 60–80% of your CBAM cost.

Smelter Boundary Mapping

We map your aluminium production process — electrolysis pots, anode bake furnaces, casthouse, rolling mills — to identify all Scope 1 emission sources and electricity consumption points.

Electricity & Fuel Data Collection

We collect your captive power plant data (coal consumption, generation records) or grid electricity bills. For captive power, we calculate the actual emission factor of YOUR power source — not the grid average. This can save crores.

Emission Calculation (Scope 1 + Scope 2)

Our experts calculate direct emissions (anode effect PFCs, fuel combustion) and indirect emissions (electricity). For Indian smelters, we precisely quantify the Scope 2 component that drives 60-80% of total CBAM cost.

Precursor & Alumina Data

If you produce your own alumina from bauxite, we calculate upstream emissions from the Bayer process. If you purchase alumina, we collect supplier emission data through automated follow-ups and verification.

EU Report & Importer Handoff

We generate the EU CBAM XML report, coordinate with your EU buyer's Authorised Declarant, and prepare all audit documentation. Your competitive position is protected with verified actual data.

Frequently Asked Questions

Which aluminium products are covered under CBAM?▼

All aluminium products under CN code 76 are covered by CBAM. This includes unwrought aluminium (primary ingots, billets, slabs), aluminium powder, bars and rods (extrusions), wire, plates and sheets, foil, tubes and pipes, and fabricated articles. Both primary (smelted) and secondary (recycled/scrap-based) aluminium products are covered when exported to the EU.

Why is CBAM particularly expensive for Indian aluminium?▼

Indian aluminium has uniquely high CBAM exposure because of electricity. Primary aluminium smelting is extremely electricity-intensive (~14,000–15,000 kWh per tonne). About 54% of Indian aluminium smelting uses coal-based captive power, resulting in Scope 2 emissions of 10–14 tCO₂ per tonne — compared to just 2–4 tCO₂ in the EU (where hydropower dominates). This electricity gap alone can cost Indian exporters $1,500–$1,600 per tonne in CBAM charges.

How are embedded emissions calculated for aluminium?▼

CBAM embedded emissions for aluminium include: (1) Direct emissions (Scope 1) from the anode effect (PFC gases), anode bake furnaces, and fuel combustion. (2) Indirect emissions (Scope 2) from electricity consumption in electrolysis — this is the dominant component for Indian smelters. (3) Precursor emissions from alumina refining (if using own alumina from bauxite). The key metric is total CO₂ equivalent per tonne of unwrought aluminium produced.

Do secondary aluminium (scrap-based) producers need to comply?▼

Yes. Secondary aluminium producers using scrap as input are covered under CBAM when exporting to the EU. However, secondary aluminium has significantly lower emissions (0.5–1.5 tCO₂/tonne vs 14–18 tCO₂ for coal-powered primary). Verified actual emission data is critical here — using EU defaults for secondary aluminium would massively overstate your emissions and CBAM cost. CarbonSettle ensures your low-emission advantage is properly documented.

How can Indian aluminium exporters reduce CBAM costs?▼

Three strategies: (1) Use verified actual emission data instead of defaults — this alone can save 30–40%. (2) Transition to renewable energy for smelting operations to reduce Scope 2 emissions (some Indian smelters using hydro power already have comparable emissions to EU producers). (3) Invest in anode technology and process efficiency to reduce Scope 1 PFC emissions. CarbonSettle helps you quantify savings from each strategy and implements the compliance reporting immediately.

Get Your Aluminium Plant CBAM-Ready in 2–4 Weeks

CarbonSettle specializes in the complex Scope 2 electricity calculations that determine 60–80% of your CBAM cost. Whether you're a primary smelter, extrusion plant, or foil manufacturer — we'll ensure your actual emissions are properly verified and save you crores versus default values.

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