Platts launches weekly calculated CBAM cost for European aluminum assessments

[Updates calculations to reflect European Commission's prevailing benchmark carbon intensity of 1.423 metric ton of CO2 equivalent per mt of aluminum.]

Platts, part of S&P Global Energy, has launched a weekly calculated value for the additional costs associated with the EU's Carbon Border Adjustment Mechanism (CBAM) for European aluminum premiums assessed on a duty-paid basis imported into the EU, effective Jan. 2, 2026.

CBAM requires importers of aluminum into the EU to purchase CBAM certificates for material imported from January 2026. Under European Commission regulation, CBAM certificates will be calculated as the weekly average auction price of the EU Emissions Trading System Allowances (EUAs).

The calculation provides additional transparency and granularity to the market through 2026, given that the requirement to purchase CBAM certificates has been delayed to January 2027, based on the most recent announcements from the EC.

Following market feedback, the calculation uses a Scope 1 industry average of 1.8 metric ton of CO2 equivalent per mt of aluminum in place of the prevailing EC default carbon intensity (CI) default value. Feedback indicated that 1.8 mt CO2e/mt of aluminum will be more reflective of the market and corresponding CBAM values.

The weekly CBAM cost is calculated using the following formula and inputs:

[Industry average CI for aluminum – (EC's prevailing benchmark CI for aluminum x CBAM ramp-up factor)] x carbon cost = Calculated aluminum CBAM cost ($/mt)

The typical CI of imported material into Europe: This is initially 1.8 mt CO2e/mt of unwrought aluminum, based on feedback Platts has collected from the market. This will be periodically reviewed and updated accordingly. Any updates to this figure will be communicated in subsequent subscriber notes.

The prevailing EC benchmark CI value: Platts uses the prevailing EC benchmark carbon intensity of 1.423 mt CO2e/mt of aluminum and will update this figure as necessary.

In light of the latest regulatory guidance, Platts has updated the EC benchmark carbon intensity of 1.423 mt CO2e/mt of aluminum, from the previously communicated 1.464 mt CO2e/mt of aluminum. This is in line with the CBAM benchmark values published in the Commission Implementing Regulation (EU) 2025/2620 Annex that apply from Jan. 1, 2026, available here. Platts will continue to review and update these input values for the CBAM cost calculations.

The official EC multiplier for the phase out of free allowances from 2026 to 2034: In 2026, this level has been set at a 2.5% reduction (giving a multiplier of 97.5%).

The cost per point of CI, as represented by the Platts EUA Nearest December EUR/mt assessment weekly average (EADMP04) converted into US Dollars: This is based on the expectation that all certificates will be bought relative to the EU ETS cost without differentiating based on potential origin offsets. More information on the existing weekly average of Platts EUA assessment can be found here.

For simplicity, the calculation assumes that no carbon price has been paid on production overseas.

As an example, using the Platts EU Emission Allowance Nearest-December WAvg and euro-US dollar currency conversion assessments from Nov. 14, 2025, the calculated aluminum CBAM cost ($/mt):

[1.8 mt CO2e/mt of aluminum – (1.423 mt CO2e/mt of aluminum x 0.975)] x (€80.98/mt x 1.161900) = $38.82/mt

Platts has also launched calculated monthly and quarterly averages for the aluminum CBAM cost ($/mt) from the month of January 2026 and the January-March 2026 quarter.

The assessments and corresponding symbols are listed below:

The CBAM cost is published at 1630 London time on Fridays and follows the UK holiday calendar. If Friday is a non-publishing day, then the assessments will be published on the previous working day.

The calculated CBAM cost will be relevant to the Platts' European primary aluminum and billet duty paid premium assessments previously outlined here.

Platts first proposed launching the assessment on July 17 in a subscriber note available here. Platts communicated the decision to launch the assessments on Nov. 21 in a subscriber note available here.

The weekly aluminum calculated CBAM cost assessment, as well as associated monthly and quarterly averages, are published in Platts Metals Daily, Metals Week, Platts Nonferrous Metals Alerts Report and in the Platts price database. The assessments are also published on the MTL/PMA0421 and MTL/PMA0650 fixed pages.

Please send comments and questions to EMEAMetalsTeam@spglobal.com and pricegroup@spglobal.com.

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