CBAM and EPD Interaction

Product LCA & EPD
1

Hello,

I’ve just learned about CBAM from a supplier - my understanding is that CBAM certificates for a particular product are produced following a life cycle assessment of that product. Is this process similar to EPD LCA’s and is there a way to link the two withing the tool, for example, if a supplier has a CBAM certificate already, is there a way to import that information into my EPD? Or are there any plans to do this? Or maybe the two aren’t compatible in that way?

Thanks.

2

Hi James,

Unfortunately, CBAm will be different documents and can’t be used as such to generate an EPD. I’m not sure there is any plan for this in the future.

It’s a ifferent document and it should be done in an excel template provided by EU and templates for different sectors covered by Cbam are available also on EU website. Methodology is also different, and the transition period where LCA results were accepted expired. Also they have different reportings for EU and non EU countries.

Additionally, each local government needs to set this up/ appoint an entity for CBAM.

I hope this helps,

Have a nice day

Paul

3

Thanks Paul, I suspected that was the case. Out of interest do you know how the methodology differs? It sounded pretty similar when someone was explaining it to me. Do you mean CBAM have moved away from using LCA’s?

4

Hi James

You’re right to pick up on the similarities – both rely heavily on Life Cycle Assessments (LCAs). CBAM hasn’t moved away from using LCAs; in fact, LCA principles are fundamental to determining the embedded emissions required for CBAM.

The key difference isn’t about whether LCA is used, but rather how the LCA data is applied and what specific data points are prioritized for CBAM reporting. While EPDs aim for a comprehensive overview of environmental impacts across various categories (e.g., acidification, eutrophication, etc.), CBAM primarily focuses on greenhouse gas emissions (specifically, direct and indirect emissions from the production process).

An EPD is a detailed environmental health check-up for your product, covering many aspects. CBAM, for now, is primarily interested in one vital sign: the carbon footprint.

Here’s a breakdown of the nuances:

  • Scope and System Boundaries: While EPDs often cover the entire product lifecycle (cradle-to-grave), CBAM’s initial focus is more on the emissions occurring up to the point of import into the EU (cradle-to-gate). This means some downstream impacts considered in a full EPD might not be directly relevant for CBAM reporting at this stage. However, the data from your EPD, even if covering a wider scope, is still valuable as the cradle-to-gate portion is included within it.
  • Allocation Methods: How emissions are allocated to specific products in multi-product processes can differ slightly. While EPDs follow standardized allocation rules (e.g., ISO standards), CBAM might have specific requirements or guidance on allocation that need to be considered.
  • Data Specificity and Verification: CBAM places a strong emphasis on the accuracy and verification of emissions data. While EPDs also require verification, the level of scrutiny for CBAM reporting, especially as the system matures, might be even higher. Having third-party verified EPDs based on robust LCA studies puts you in a good position but ensuring the data is presented in the correct format for CBAM is essential.
  • Reporting Format and Requirements: Even if the underlying LCA data is similar, the way it’s reported for CBAM is different from the EPD format. CBAM has specific templates and reporting platforms that importers must use.

In essence, your EPDs provide an excellent foundation for CBAM compliance, but you might need to extract, refine, and present the data in a specific way to meet the precise CBAM reporting requirements. It’s not about the methodology being completely different, but rather about how the LCA data is used, focused, and reported.

I hope this clarifies the distinction. Let me know if you have any more questions!

5

Great, thanks for the explanation Paul.