All CBAM CN codes
CN 7601Covered by CBAMAluminium

CN 7601 under CBAM — Unwrought Aluminium (Ingots & Billets)

Unwrought aluminium

Primary aluminium ingots, billets, slabs and wire bar — the raw metal from India’s smelters (Hindalco, Vedanta, NALCO) and the secondary (recycled) ingot industry. This is the heading where aluminium’s CBAM story is set: everything downstream — extrusions, sheet, foil — inherits the metal’s emissions as a precursor.

Covered
CBAM status of this heading
1 Jan 2026
Definitive phase — certificates due
€70–80
per tCO₂ — certificate price tracks EU ETS
up to ~40%
typical cost cut with verified actuals
Emission profile

Where the emissions in CN 7601 come from

Aluminium smelting is extreme electricity intensity — and in India, more than half of smelting capacity runs on coal-based captive power, putting coal-route metal at 14–18 tCO₂/t while hydro-powered smelters achieve 4–7 tCO₂/t and scrap-based secondary metal 0.5–1.5 tCO₂/t. The EU default value for this heading is deliberately conservative. Because Indian aluminium spans coal-powered smelting (14–18 tCO₂/t) down to hydro-powered (4–7 tCO₂/t) and scrap-based metal (0.5–1.5 tCO₂/t), a default erases exactly the low-carbon advantage that cleaner producers actually have — verified actuals restore it.

Why we don’t print a default value here

The EU publishes and updates specific default values per goods category separately — quoting a stale number would mislead you. What never changes: defaults are set deliberately high, and the markup escalates from 10% in 2026 to 30% by 2028 for steel and aluminium (free-allowance phase-out runs to 2034). Use the CBAM calculator for a current, product-specific estimate.

What to do

Exporting under CN 7601? Three moves, in order.

  1. 01

    Identify your production route and precursors

    Establish the power source behind every tonne: coal captive, grid, hydro or renewables — under CBAM aluminium’s indirect (Scope 2) emissions are counted, and power source is the whole story. Secondary producers: document the scrap charge.

  2. 02

    Collect the data you already have

    Captive-plant fuel and generation records or grid bills, smelter energy-intensity data, anode consumption records, alumina sourcing (a precursor if purchased), cast-house production logs.

  3. 03

    File verified actuals, not defaults

    Have the numbers computed to the EU CBAM methodology and verified, then hand your EU buyer’s Authorised Declarant a filing they can use. Verified actuals typically cut the CBAM cost by up to ~40% versus default values — and the default markup only gets worse, escalating from 10% in 2026 to 30% by 2028 for steel and aluminium.

Free this quarter: We cover your first report (April–June 2026) so an inflated EU default never costs you an order. Continue only if you choose to. Free for the April–June 2026 quarter — start your report by 30 September 2026.

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Frequently asked

CN 7601 and CBAM, in plain English

Is CN 7601 covered by CBAM?

Yes. CN 7601 — unwrought aluminium — ingots, billets, slabs and similar primary forms — is a covered good under the EU Carbon Border Adjustment Mechanism. Any consignment under this heading imported into the EU has carried reporting obligations since the transitional phase (1 October 2023 – 31 December 2025), and since the definitive phase began on 1 January 2026 the EU importer must buy CBAM certificates against its embedded emissions. Both primary smelted metal and secondary (recycled) ingot fall under this heading.

How much CBAM cost does CN 7601 face in 2026?

CBAM certificates track the EU ETS carbon price — roughly €70–80 per tonne of CO₂ in 2026 — so the bill is your embedded emissions multiplied by that price. Aluminium’s bill is dominated by electricity: coal-powered primary metal carries several times the embedded emissions of hydro-powered or scrap-based metal, so two identical consignments can face wildly different CBAM costs. Verified actuals typically cut the cost by up to ~40% versus defaults — use our calculator for a product-specific estimate.

Why is electricity the whole CBAM story for aluminium?

Because smelting is among the most electricity-intensive industrial processes there is, and CBAM counts aluminium’s indirect (Scope 2) emissions — so the carbon content of your power source lands directly in your product’s number. Coal-based captive power puts Indian primary metal at 14–18 tCO₂/t; hydro-powered smelters run at 4–7 tCO₂/t. Same metal, same purity — a multiples-wide gap in CBAM cost, decided entirely by the power plant behind the potline.

We make secondary ingot from scrap. Do we really need verified actuals?

More than anyone. Scrap-based metal at 0.5–1.5 tCO₂/t is the cleanest aluminium in the market — but on defaults the EU assumes a conservative figure that erases that advantage completely. For a secondary producer, verified actuals are not cost mitigation, they are the product’s selling point: documented low-carbon metal that cuts the EU buyer’s CBAM bill relative to defaults is a commercial weapon.