WEBVTT

48a43d12-9056-4676-9acd-60ad3e6426e7-0
00:00:00.040 --> 00:00:03.160
It is a pleasure to welcome you today to
this webinar.

2ae1cd9d-8c70-4267-9914-76db777d6afa-0
00:00:03.360 --> 00:00:06.880
My name is Esther Danielow,
I'm the Head of unit of Tax at C5.

0f797aa9-1fba-47d5-85f4-9dd619331223-0
00:00:06.880 --> 00:00:11.994
So our unit is dealing in particular with
topics related to the methodology and

0f797aa9-1fba-47d5-85f4-9dd619331223-1
00:00:11.994 --> 00:00:14.360
scope and economic analysis of C Bam.

403b0e19-4332-4da3-811e-56380fffde66-0
00:00:14.920 --> 00:00:19.520
Today's the second webinar in a wider
series of 6 webinars.

0eca5842-483d-431d-a78d-51aad06cab45-0
00:00:19.960 --> 00:00:24.025
And please take note that upcoming
seminars will touch up on certificates,

0eca5842-483d-431d-a78d-51aad06cab45-1
00:00:24.025 --> 00:00:26.844
declaration,
carbon prices paid in the said country

0eca5842-483d-431d-a78d-51aad06cab45-2
00:00:26.844 --> 00:00:28.200
and downstream extension.

af14aaa9-ca0d-49f8-8013-ae5a4b7236ae-0
00:00:28.840 --> 00:00:32.097
During the first webinar,
which took place in March,

af14aaa9-ca0d-49f8-8013-ae5a4b7236ae-1
00:00:32.097 --> 00:00:37.014
we presented a bigger picture of C BAM,
focusing on emission calculation and on

af14aaa9-ca0d-49f8-8013-ae5a4b7236ae-2
00:00:37.014 --> 00:00:38.920
accreditation and verification.

a0f3fff9-673e-422c-b967-c57460ee76cd-0
00:00:39.120 --> 00:00:43.246
The recording and related materials are
to be found on the C Bam website for all

a0f3fff9-673e-422c-b967-c57460ee76cd-1
00:00:43.246 --> 00:00:44.520
of you to have a look at.

dae776dd-e3f2-4e0a-b213-ee6347150b22-0
00:00:44.880 --> 00:00:49.978
One of the main elements of the emission
calculation is obviously calculating the

dae776dd-e3f2-4e0a-b213-ee6347150b22-1
00:00:49.978 --> 00:00:51.160
embedded emissions.

93cd4f47-a7ef-47b4-93a9-17c2473b05e4-0
00:00:51.160 --> 00:00:56.242
C BAM importers have to decide whether
embedded emission will be based on actual

93cd4f47-a7ef-47b4-93a9-17c2473b05e4-1
00:00:56.242 --> 00:00:58.000
values or on default values.

576603ad-bf6d-4cbf-80da-c515d33ddf4e-0
00:00:58.240 --> 00:01:01.774
C BAM, as you know,
included the transitional period and

576603ad-bf6d-4cbf-80da-c515d33ddf4e-1
00:01:01.774 --> 00:01:05.680
since 1st January 2026,
we have entered the definitive period.

10b17ed7-5008-4897-a6fe-d04b5808575f-0
00:01:05.680 --> 00:01:09.572
To accompany this transition,
a package of implementing legislation

10b17ed7-5008-4897-a6fe-d04b5808575f-1
00:01:09.572 --> 00:01:11.920
setting out the rules for the definitive.

e91e23f0-ff96-4e30-9a87-ab3ff5a11e55-0
00:01:11.920 --> 00:01:14.520
Was published in December 2025.

8b348696-359f-4daa-9862-ad404e03acce-0
00:01:14.800 --> 00:01:18.013
This included,
among others and of particular relevance

8b348696-359f-4daa-9862-ad404e03acce-1
00:01:18.013 --> 00:01:21.629
today, the Implementing Act,
laying out the new methodology to

8b348696-359f-4daa-9862-ad404e03acce-2
00:01:21.629 --> 00:01:24.154
calculate emissions based on actual
values,

8b348696-359f-4daa-9862-ad404e03acce-3
00:01:24.154 --> 00:01:28.000
which we will refer to as the methodology
throughout this webinar.

c1432a23-51c2-48d3-b2e6-0732eaa2bdeb-0
00:01:28.320 --> 00:01:32.134
The main goal of today's webinar is to
cover the methodology by focusing on the

c1432a23-51c2-48d3-b2e6-0732eaa2bdeb-1
00:01:32.134 --> 00:01:34.280
changes compared to the transitional
period.

992223ef-b758-4222-b95c-201b6e790a22-0
00:01:34.440 --> 00:01:36.526
We hope we will find it useful and
interesting,

992223ef-b758-4222-b95c-201b6e790a22-1
00:01:36.526 --> 00:01:39.960
and I already take the opportunity to
thank my colleagues who will present it.

4c514e12-d295-441f-9baf-de4014a396b8-0
00:01:40.040 --> 00:01:43.920
Now I will give the floor to Sophia for
the agenda and housekeeping rules.

03a3c2e4-98ca-42df-b279-29e9821e0e54-0
00:01:44.080 --> 00:01:44.480
Thank you.

a0ce91b9-675a-496f-a84f-ed602ffb64ec-0
00:01:45.040 --> 00:01:47.960
Thank you so much, Astrid,
and welcome everyone.

56d57672-0e20-4106-9194-7de034aed1de-0
00:01:47.960 --> 00:01:53.653
My name is Sophia Rosanelli and I work in
unit C2 of Digitaxud working specifically

56d57672-0e20-4106-9194-7de034aed1de-1
00:01:53.653 --> 00:01:55.280
on C bum implementation.

239ee201-68c6-4f82-b0db-2af46ab26543-0
00:01:55.400 --> 00:01:57.360
Today I will be your moderator.

f933d03f-e504-40d0-8c25-9442076b5ce7-0
00:01:57.440 --> 00:02:00.570
And first of all,
I would like again to thank you for for

f933d03f-e504-40d0-8c25-9442076b5ce7-1
00:02:00.570 --> 00:02:01.920
your participation today.

8c208336-013c-496e-b838-e3a038b38455-0
00:02:01.920 --> 00:02:06.193
We have received more than 4500
registered participants and we're very

8c208336-013c-496e-b838-e3a038b38455-1
00:02:06.193 --> 00:02:08.360
happy to see such a high engagement.

cbb7570b-f6e5-47d6-b950-7af91ecbd97a-0
00:02:08.880 --> 00:02:13.400
Let's start with a very brief overview of
where most of our audience comes from.

e7d9a0fe-5ebc-4b11-9ef1-842e25217fb6-0
00:02:13.400 --> 00:02:18.828
And so you can see from the slide,
most of our participants are based in the

e7d9a0fe-5ebc-4b11-9ef1-842e25217fb6-1
00:02:18.828 --> 00:02:19.040
EU.

505c3c3a-d8b8-44f0-924c-aa212b202057-0
00:02:19.320 --> 00:02:24.072
We're talking about 62.
6% of the total of participants, while 37.

505c3c3a-d8b8-44f0-924c-aa212b202057-1
00:02:24.072 --> 00:02:26.200
4 are based outside of the EU.

30b0ea05-041d-460a-8263-a8af4a81f312-0
00:02:26.240 --> 00:02:29.677
And if we have a look at the top ten
countries,

30b0ea05-041d-460a-8263-a8af4a81f312-1
00:02:29.677 --> 00:02:34.475
we can see that the highest share is
connecting today from Turkey,

30b0ea05-041d-460a-8263-a8af4a81f312-2
00:02:34.475 --> 00:02:39.702
followed by Germany, Spain, Italy,
Belgium, France, the UK, Netherlands,

30b0ea05-041d-460a-8263-a8af4a81f312-3
00:02:39.702 --> 00:02:40.920
China and Poland.

9604d5d4-78c1-405b-9786-94bf282e82a5-0
00:02:41.680 --> 00:02:44.613
Now, before we start,
I would like to walk you through some

9604d5d4-78c1-405b-9786-94bf282e82a5-1
00:02:44.613 --> 00:02:46.080
very brief housekeeping rules.

aa0d7e56-2840-4e3e-adc1-0f28fa113965-0
00:02:46.120 --> 00:02:47.600
First of all, thank you so much.

dbf91af1-35ed-4ee9-b789-c55c4e42a6f8-0
00:02:47.600 --> 00:02:51.760
For those to those of you who have
submitted questions during your

dbf91af1-35ed-4ee9-b789-c55c4e42a6f8-1
00:02:51.760 --> 00:02:55.237
registration,
we have gathered all the questions and we

dbf91af1-35ed-4ee9-b789-c55c4e42a6f8-2
00:02:55.237 --> 00:02:58.962
have done our best to select the ones
that are more common,

dbf91af1-35ed-4ee9-b789-c55c4e42a6f8-3
00:02:58.962 --> 00:03:02.440
but also more relevant to the scope of
today's webinar.

bfa71806-35af-42a5-b1e1-568163c0ad75-0
00:03:02.600 --> 00:03:06.022
And for the Q&amp;A,
we will have a dedicated section at the

bfa71806-35af-42a5-b1e1-568163c0ad75-1
00:03:06.022 --> 00:03:10.680
very end of the presentation that will be
held by my colleagues after the webinar.

32266d9f-cfcd-4ecf-b829-2abd0daf85d7-0
00:03:10.680 --> 00:03:15.318
As already mentioned by Astrid,
we will share the webinar recording,

32266d9f-cfcd-4ecf-b829-2abd0daf85d7-1
00:03:15.318 --> 00:03:18.680
the key takeaways and also a satisfaction
survey.

8f5fe214-9e6c-4fef-ac8b-12a1501fe1c4-0
00:03:19.240 --> 00:03:22.520
The material will be available on the C
Band website.

100922a8-8b48-4e4a-beff-069ed4da741f-0
00:03:22.560 --> 00:03:26.255
As you might have noticed,
we're currently undergoing a

100922a8-8b48-4e4a-beff-069ed4da741f-1
00:03:26.255 --> 00:03:30.940
restructuring of our website and the
material will be available in the

100922a8-8b48-4e4a-beff-069ed4da741f-2
00:03:30.940 --> 00:03:35.560
Communication and FAQs section,
but also for registered participants.

e332301b-0eec-4128-9b1a-0d297a547ffb-0
00:03:35.640 --> 00:03:38.800
All those materials will be shared via an
e-mail.

cf740393-8577-444c-8891-4366c513ff19-0
00:03:38.960 --> 00:03:41.640
Now let's go through the agenda.

26dfa2fd-2414-4f0b-98cf-b241ff777160-0
00:03:41.960 --> 00:03:47.595
We will start with a brief introduction
sat in the scene explaining why

26dfa2fd-2414-4f0b-98cf-b241ff777160-1
00:03:47.595 --> 00:03:52.840
methodology is important specifically for
third country operators.

4334f0ff-e89f-4621-8f49-5b8cda1b146c-0
00:03:52.840 --> 00:03:57.069
We will then dive deep into the
methodology and touch upon the topics

4334f0ff-e89f-4621-8f49-5b8cda1b146c-1
00:03:57.069 --> 00:03:58.640
that you see on the slide.

e61734be-f1f4-4dd6-8508-d014b41f61b6-0
00:03:58.640 --> 00:04:02.744
So we're going to touch upon functional
unit production processes,

e61734be-f1f4-4dd6-8508-d014b41f61b6-1
00:04:02.744 --> 00:04:07.339
system boundary, indirect emissions,
emissions from precursors and finally

e61734be-f1f4-4dd6-8508-d014b41f61b6-2
00:04:07.339 --> 00:04:10.280
monitoring plan and operators emissions
report.

9acb6ff6-e26d-4f4b-84cd-a37bd8588ff4-0
00:04:10.360 --> 00:04:13.686
And lastly,
we will have the dedicated section about

9acb6ff6-e26d-4f4b-84cd-a37bd8588ff4-1
00:04:13.686 --> 00:04:14.440
the Q&amp;A.

d2ab8bf4-9dae-480d-be66-dfc87f23b929-0
00:04:14.440 --> 00:04:18.237
Lastly,
I would like to inform participants that

d2ab8bf4-9dae-480d-be66-dfc87f23b929-1
00:04:18.237 --> 00:04:19.400
were streaming.

1304e2db-6cdc-4a5c-8946-9c9459845f81-0
00:04:19.440 --> 00:04:22.804
As you know,
there might be a slight delay between the

1304e2db-6cdc-4a5c-8946-9c9459845f81-1
00:04:22.804 --> 00:04:26.475
sound and the slides,
but we're going to try our best to to

1304e2db-6cdc-4a5c-8946-9c9459845f81-2
00:04:26.475 --> 00:04:27.760
coordinate of course.

e20c6a30-21d8-4170-bc36-1a3ba0b2fe37-0
00:04:28.000 --> 00:04:32.160
Now time to start and I will give the
floor to Ivana.

6e7b2af4-5d7c-4efa-8746-c83560ae6c41-0
00:04:32.760 --> 00:04:35.844
Thank you,
Sophia and good afternoon again to every

6e7b2af4-5d7c-4efa-8746-c83560ae6c41-1
00:04:35.844 --> 00:04:36.200
party.

62b5700f-43bd-47bd-abe0-1a2fc7a8abd3-0
00:04:36.320 --> 00:04:38.000
My name is Ivana Hotskova.

d72b04df-f596-4d28-8449-bbe6f593e57f-0
00:04:38.160 --> 00:04:43.198
I am working in the C2 unit responsible
for the team for the implementation of

d72b04df-f596-4d28-8449-bbe6f593e57f-1
00:04:43.198 --> 00:04:46.897
the C BAM directly,
practically in the C BAM registry and

d72b04df-f596-4d28-8449-bbe6f593e57f-2
00:04:46.897 --> 00:04:51.936
also working very closely with Sophia and
our sister unit with Astrid that are

d72b04df-f596-4d28-8449-bbe6f593e57f-3
00:04:51.936 --> 00:04:54.360
dealing with more methodology aspects.

5e465b69-79ea-47be-953a-2cf165615bd7-0
00:04:54.360 --> 00:04:59.104
So why we organize this webinar,
because we understand that it's very,

5e465b69-79ea-47be-953a-2cf165615bd7-1
00:04:59.104 --> 00:05:04.383
very important for those third countries
and those operators and producers and

5e465b69-79ea-47be-953a-2cf165615bd7-2
00:05:04.383 --> 00:05:09.996
exporters who have their C Bum goods with
least carbon emissions and they did their

5e465b69-79ea-47be-953a-2cf165615bd7-3
00:05:09.996 --> 00:05:11.600
decarbonisation efforts.

36b2de16-0062-43a0-ac98-833fad54c248-0
00:05:11.840 --> 00:05:15.651
How they can prove it,
how they can show it and use it as a

36b2de16-0062-43a0-ac98-833fad54c248-1
00:05:15.651 --> 00:05:20.734
competitive advantage because it is a
core of AC Bum where we would like to see

36b2de16-0062-43a0-ac98-833fad54c248-2
00:05:20.734 --> 00:05:22.640
reporting on actual emissions.

08c8422b-8d10-41e1-ae3f-a808e041d4ad-0
00:05:23.240 --> 00:05:26.130
The methodology is quite complex,
but don't worry,

08c8422b-8d10-41e1-ae3f-a808e041d4ad-1
00:05:26.130 --> 00:05:30.323
we will break it down for you and
hopefully after this webinar it will be

08c8422b-8d10-41e1-ae3f-a808e041d4ad-2
00:05:30.323 --> 00:05:34.800
much clearer why it is very important to
understand the methodology right now.

8ba3cd07-ef03-4f69-b89c-1ef6241646f8-0
00:05:35.040 --> 00:05:39.181
Because in 2026,
it's a first year where the emissions,

8ba3cd07-ef03-4f69-b89c-1ef6241646f8-1
00:05:39.181 --> 00:05:44.727
when they are really happening as we
speak, they are going to be measured,

8ba3cd07-ef03-4f69-b89c-1ef6241646f8-2
00:05:44.727 --> 00:05:48.129
monitored,
recorded and later on they will be

8ba3cd07-ef03-4f69-b89c-1ef6241646f8-3
00:05:48.129 --> 00:05:52.640
reported by the decorants in their annual
CBAM declarations.

e889a6aa-b043-40bc-b0c1-cd5eb15aaa95-0
00:05:52.640 --> 00:05:54.960
We are not starting from scratch.

a49b50c6-1bcc-48b7-b8da-a51256291941-0
00:05:55.000 --> 00:06:00.280
We have been already in the transitional
period since 2023.

9bb5d9fa-a2c7-49a8-9301-b75c1d9a388d-0
00:06:00.680 --> 00:06:05.160
We were seeing a lot of reports and lot
of actual emissions reported.

4ea31207-1018-470c-8db7-15bc12ba83d4-0
00:06:05.600 --> 00:06:10.957
And I'm very happy that we saw also in
the registrations of this webinar that we

4ea31207-1018-470c-8db7-15bc12ba83d4-1
00:06:10.957 --> 00:06:16.247
have third country producers joining us
from all continents on basically almost

4ea31207-1018-470c-8db7-15bc12ba83d4-2
00:06:16.247 --> 00:06:17.240
all continents.

4d99a816-c71d-4a48-86cc-24a5f04a6cc3-0
00:06:17.240 --> 00:06:19.720
So I hope you will find that useful.

c73f4a8c-2ed4-47b0-a426-e447c2bd21b9-0
00:06:19.800 --> 00:06:25.545
We saw that already some of you are
registered in what we called third

c73f4a8c-2ed4-47b0-a426-e447c2bd21b9-1
00:06:25.545 --> 00:06:30.320
countries operator portal as a part of
the C BAM registry.

d203539b-01ec-491d-aed1-ae5a4d10b855-0
00:06:30.840 --> 00:06:36.617
The C BAM registry is the tool or the
interface that we will be using all of us

d203539b-01ec-491d-aed1-ae5a4d10b855-1
00:06:36.617 --> 00:06:38.640
to communicate on the C BAM.

5e8fe432-3501-481c-9785-0ea58c2cae87-0
00:06:39.040 --> 00:06:43.174
We have been already using it in
transitional period and a lot of you

5e8fe432-3501-481c-9785-0ea58c2cae87-1
00:06:43.174 --> 00:06:44.120
already know it.

eb9026cd-b18e-4e2c-81f4-4a75bfe1b678-0
00:06:44.560 --> 00:06:48.934
There are slight changes in the
methodology and that we will really touch

eb9026cd-b18e-4e2c-81f4-4a75bfe1b678-1
00:06:48.934 --> 00:06:49.880
upon that later.

0f23a2c3-f097-43b0-9bfb-d4f7d35d29a8-0
00:06:50.520 --> 00:06:55.952
What is also important to underline is
that all of you who are producers are

0f23a2c3-f097-43b0-9bfb-d4f7d35d29a8-1
00:06:55.952 --> 00:07:01.525
free to join the registry and use full
advantages of sharing your confidential

0f23a2c3-f097-43b0-9bfb-d4f7d35d29a8-2
00:07:01.525 --> 00:07:07.240
important sensitive emission data with
those importers who are relevant for you.

5443c0c9-5e5d-4833-a8d5-cfeb1fd5b471-0
00:07:07.960 --> 00:07:13.923
So the registry is equipped with a very
high protective features to safeguard

5443c0c9-5e5d-4833-a8d5-cfeb1fd5b471-1
00:07:13.923 --> 00:07:19.963
your data and you are able to share the
relevant information with the selected

5443c0c9-5e5d-4833-a8d5-cfeb1fd5b471-2
00:07:19.963 --> 00:07:25.697
importers and like that the information
can flow very easily and seemingly

5443c0c9-5e5d-4833-a8d5-cfeb1fd5b471-3
00:07:25.697 --> 00:07:29.520
between importers,
operators and their verifiers.

7b8d7681-84bd-4bf1-810f-0ff532ce537a-0
00:07:30.040 --> 00:07:35.809
We are all preparing for the big
declaration year in 2027 and already

7b8d7681-84bd-4bf1-810f-0ff532ce537a-1
00:07:35.809 --> 00:07:42.320
since 1st of January 2025 the producers
have possibility to join the registry.

b2418d09-d7f0-48b5-8993-a8262980ae19-0
00:07:42.480 --> 00:07:49.200
And we are very happy that we already had
more than 1000 requests to to join the EU

b2418d09-d7f0-48b5-8993-a8262980ae19-1
00:07:49.200 --> 00:07:55.040
login and already more than 200 are
approved and registered in the third

b2418d09-d7f0-48b5-8993-a8262980ae19-2
00:07:55.040 --> 00:07:56.960
country operator portal.

1e2c4952-9575-4db9-a4c0-a1b4854ed89b-0
00:07:56.960 --> 00:08:02.400
That to underline we still have a lot of
rejections for incomplete applications.

abe9cc62-392a-4946-b02a-14823a409cf0-0
00:08:02.640 --> 00:08:07.040
Please feel feel free to amend and to
send additional data.

743a5914-a464-4e38-9f2e-7a20ab79ae17-0
00:08:07.360 --> 00:08:12.360
And like that your data will be already
in the registry and you can use it.

02602fbb-7374-4c10-a405-5b8f63f82fa8-0
00:08:12.440 --> 00:08:15.718
As I said,
this is an advantage for those who are

02602fbb-7374-4c10-a405-5b8f63f82fa8-1
00:08:15.718 --> 00:08:16.440
registered.

73ca7a9a-202a-446f-bbec-19a19cbbf80a-0
00:08:17.120 --> 00:08:20.213
If you're not registered or you're still
hesitating,

73ca7a9a-202a-446f-bbec-19a19cbbf80a-1
00:08:20.213 --> 00:08:24.240
there is always a possibility to share
information later on outside.

d58e6820-819f-4210-8340-84a1aa291809-0
00:08:24.240 --> 00:08:28.700
But then the full emission reporting and
full emission data would need to be

d58e6820-819f-4210-8340-84a1aa291809-1
00:08:28.700 --> 00:08:29.280
disclosed.

3609f5d4-e11e-4dde-a7c3-af58e721ded9-0
00:08:29.320 --> 00:08:33.920
But this brings me to another stage of of
the process.

2f3f2915-9a9c-4256-8845-0e45849bfb66-0
00:08:33.960 --> 00:08:37.617
What the operators should know right now
in 2026,

2f3f2915-9a9c-4256-8845-0e45849bfb66-1
00:08:37.617 --> 00:08:43.250
what are the most important and key
things and key takeaways that we will go

2f3f2915-9a9c-4256-8845-0e45849bfb66-2
00:08:43.250 --> 00:08:49.029
into details later on is that right now
all of you hopefully already have your

2f3f2915-9a9c-4256-8845-0e45849bfb66-3
00:08:49.029 --> 00:08:50.200
monitoring plan.

74dc3de5-7226-42da-9928-a45746eaa40d-0
00:08:50.360 --> 00:08:52.664
For those who don't have it yet in
English,

74dc3de5-7226-42da-9928-a45746eaa40d-1
00:08:52.664 --> 00:08:54.760
please be careful with the translations.

f3fad6a3-73f0-4a12-89e2-9f3ca66cd9a8-0
00:08:55.080 --> 00:09:00.419
Be careful that the monitoring plan is
updated and that really represent

f3fad6a3-73f0-4a12-89e2-9f3ca66cd9a8-1
00:09:00.419 --> 00:09:02.760
physical and production reality.

18908480-a3d4-43b3-a98d-cd93703f7db3-0
00:09:03.240 --> 00:09:08.538
You would be requested and soon we will
provide a template or we called full

18908480-a3d4-43b3-a98d-cd93703f7db3-1
00:09:08.538 --> 00:09:09.640
emission report.

55f073f2-2d66-44d2-b6f2-41d133002cb4-0
00:09:10.040 --> 00:09:12.240
So we call it communication template.

13f23585-a189-4c1e-90ac-e913112c18ef-0
00:09:12.240 --> 00:09:15.200
Some of you already know it from
transitional period.

74b59e5c-0e62-435b-830a-6e59049648ed-0
00:09:15.440 --> 00:09:20.280
There will be soon an update of it that
fully corresponds to the new methodology.

7ff9ae61-5978-4a9b-a218-5c9c567d7ca2-0
00:09:20.320 --> 00:09:25.268
What is important is that you know very
well what are your installation

7ff9ae61-5978-4a9b-a218-5c9c567d7ca2-1
00:09:25.268 --> 00:09:28.774
boundaries,
system boundaries and you monitor your

7ff9ae61-5978-4a9b-a218-5c9c567d7ca2-2
00:09:28.774 --> 00:09:32.279
direct indirect emissions within those
boundaries.

2769b3a2-c837-464e-a649-87ca65fabfc3-0
00:09:32.320 --> 00:09:36.706
Another thing very important is that you
map your entire value chain,

2769b3a2-c837-464e-a649-87ca65fabfc3-1
00:09:36.706 --> 00:09:37.960
your supplier chain.

9aad4cf8-d03d-4d49-8543-3067a9a8dbbe-0
00:09:38.200 --> 00:09:43.412
If it happens that one of or more of your
precursors and we had also received a lot

9aad4cf8-d03d-4d49-8543-3067a9a8dbbe-1
00:09:43.412 --> 00:09:48.253
of questions to that happened to be see
them goods in order to use the actual

9aad4cf8-d03d-4d49-8543-3067a9a8dbbe-2
00:09:48.253 --> 00:09:51.480
real emissions those precursors from the
suppliers.

f3f087dd-4cfd-4489-946e-c3a978ce9b10-0
00:09:51.520 --> 00:09:56.260
They also would need to be supported by
verification report and reported on

f3f087dd-4cfd-4489-946e-c3a978ce9b10-1
00:09:56.260 --> 00:09:56.760
actuals.

43946b86-4449-452e-872f-868eafb9c5a7-0
00:09:57.280 --> 00:10:02.728
If you want to avoid use of a default
values and why it is really,

43946b86-4449-452e-872f-868eafb9c5a7-1
00:10:02.728 --> 00:10:08.663
really beneficial because later with a
deadline of 30 of September 2027,

43946b86-4449-452e-872f-868eafb9c5a7-2
00:10:08.663 --> 00:10:14.925
your importers or your declarants will be
able to submit and profit from the

43946b86-4449-452e-872f-868eafb9c5a7-3
00:10:14.925 --> 00:10:19.560
declaration with much lower values,
much lower CMM cost.

0cc90893-8c91-44a0-b204-c1dafed46df8-0
00:10:19.920 --> 00:10:24.626
And of course that gives you a real
competitive advantage on the

0cc90893-8c91-44a0-b204-c1dafed46df8-1
00:10:24.626 --> 00:10:27.160
international, international stage.

343cd904-9e9f-4bd7-8f46-74a81d846490-0
00:10:28.560 --> 00:10:32.120
And as I speak about that right now,
why so?

934163c4-0767-4f71-abad-bf9701d3e6ca-0
00:10:32.440 --> 00:10:38.352
Because it's true that the use of the
actual emissions requires use of the

934163c4-0767-4f71-abad-bf9701d3e6ca-1
00:10:38.352 --> 00:10:40.560
verification report as well.

de6fbcc7-9402-475b-b568-13b1cab0cc30-0
00:10:41.120 --> 00:10:48.341
The verification is only going to happen
later in 26 or early 27 or only in 27 and

de6fbcc7-9402-475b-b568-13b1cab0cc30-1
00:10:48.341 --> 00:10:55.040
it is a prerequisite or whoever wants to
profit in and submit a declaration.

721acd29-3487-4164-b181-287fe8445f21-0
00:10:55.520 --> 00:10:58.231
It's not only actual emissions that have
to be reported,

721acd29-3487-4164-b181-287fe8445f21-1
00:10:58.231 --> 00:11:00.800
they have to be supported by the
verification report.

8a493e26-2dde-462b-90c5-99c443dcc2c0-0
00:11:01.880 --> 00:11:06.849
It would be very useful if you already
map not only who your suppliers are,

8a493e26-2dde-462b-90c5-99c443dcc2c0-1
00:11:06.849 --> 00:11:09.400
but who can come and verify first year.

ec638c90-3b6a-422e-800b-3523e5c743ea-0
00:11:09.400 --> 00:11:14.663
It is required also physical visit to
visit your installation and that whatever

ec638c90-3b6a-422e-800b-3523e5c743ea-1
00:11:14.663 --> 00:11:18.347
number you're going to put in the full
emission report,

ec638c90-3b6a-422e-800b-3523e5c743ea-2
00:11:18.347 --> 00:11:23.018
you know exactly where this number came
from, who did the measurement,

ec638c90-3b6a-422e-800b-3523e5c743ea-3
00:11:23.018 --> 00:11:27.886
who did verify the measurement that you
have created a quality assurance,

ec638c90-3b6a-422e-800b-3523e5c743ea-4
00:11:27.886 --> 00:11:33.018
quality control within your installation
to ensure that also if there are any

ec638c90-3b6a-422e-800b-3523e5c743ea-5
00:11:33.018 --> 00:11:38.478
changes to the methodology or the values,
they are fully supported by at least for

ec638c90-3b6a-422e-800b-3523e5c743ea-6
00:11:38.478 --> 00:11:39.399
our principal.

f8527e0f-2be4-4571-84c8-baa9aa4d16d7-0
00:11:40.000 --> 00:11:45.530
So what we can suggest to you and say
like a best practice while you are doing

f8527e0f-2be4-4571-84c8-baa9aa4d16d7-1
00:11:45.530 --> 00:11:48.890
reporting of actual emissions and
measuring it,

f8527e0f-2be4-4571-84c8-baa9aa4d16d7-2
00:11:48.890 --> 00:11:54.280
prepare your verification file to be
ready to understand how the numbers are

f8527e0f-2be4-4571-84c8-baa9aa4d16d7-3
00:11:54.280 --> 00:11:57.570
generated, controlled,
how they were reviewed,

f8527e0f-2be4-4571-84c8-baa9aa4d16d7-4
00:11:57.570 --> 00:12:02.680
who approved them and how can you support
every number with an evidence.

5aabcd93-a30c-4fba-86f8-1fb36dbc06dd-0
00:12:03.080 --> 00:12:07.669
So I wish you really good luck in this
and I'll leave you now with the hands of

5aabcd93-a30c-4fba-86f8-1fb36dbc06dd-1
00:12:07.669 --> 00:12:12.030
my colleagues who will go more into
technical details to really explore you

5aabcd93-a30c-4fba-86f8-1fb36dbc06dd-2
00:12:12.030 --> 00:12:14.440
the beauty and mystery of the methodology.

e2d3f311-9fcc-4b69-bfd3-65b90fd82606-0
00:12:14.560 --> 00:12:16.520
Thank you, Rana, Good afternoon, everyone.

4340fcda-e7a1-4e83-af4d-152837e761ae-0
00:12:16.520 --> 00:12:22.332
I'm Rosie Rodriguez and I'm part of the
Taksudo Sivam team and I'm going to be

4340fcda-e7a1-4e83-af4d-152837e761ae-1
00:12:22.332 --> 00:12:28.144
one of the colleagues in in the Serum
team that will explain you the beauties,

4340fcda-e7a1-4e83-af4d-152837e761ae-2
00:12:28.144 --> 00:12:30.719
as even I said, of the methodology.

859a3f84-bfce-40c8-9ad7-be7f3e17c58f-0
00:12:31.680 --> 00:12:36.163
But today in particular,
we are going to focus on the key changes

859a3f84-bfce-40c8-9ad7-be7f3e17c58f-1
00:12:36.163 --> 00:12:38.880
that the methodology for the definitive.

ba8083b6-db7d-42f4-a1ba-4d8f764f74f9-0
00:12:38.920 --> 00:12:42.523
Has introduced compared to the
transitional methodology,

ba8083b6-db7d-42f4-a1ba-4d8f764f74f9-1
00:12:42.523 --> 00:12:47.327
since these are the sources of most of
the questions and doubts that we are

ba8083b6-db7d-42f4-a1ba-4d8f764f74f9-2
00:12:47.327 --> 00:12:47.959
receiving.

0995a1e4-30fd-48fc-bd45-7d532f0a5de9-0
00:12:48.080 --> 00:12:53.521
So the idea is that during this webinar,
we will explain these changes together

0995a1e4-30fd-48fc-bd45-7d532f0a5de9-1
00:12:53.521 --> 00:12:58.827
with examples as this is the best way to
show the practical implementation of

0995a1e4-30fd-48fc-bd45-7d532f0a5de9-2
00:12:58.827 --> 00:13:00.120
these new elements.

4be8f86f-1346-44eb-b117-c4a1b0fa32db-0
00:13:00.360 --> 00:13:05.402
But of course, apart from this webinar,
you will also have more details and more

4be8f86f-1346-44eb-b117-c4a1b0fa32db-1
00:13:05.402 --> 00:13:09.946
explanations in the updated guidance
document for operators that will be

4be8f86f-1346-44eb-b117-c4a1b0fa32db-2
00:13:09.946 --> 00:13:10.880
published soon.

0b6185bd-4ad1-42b2-a833-8f9e538c33f0-0
00:13:11.200 --> 00:13:14.640
And this will not be the only guidance
apart from from this one.

bac5e206-bf13-4050-bea3-0c20b33d14e3-0
00:13:14.640 --> 00:13:19.160
You will also have guidance document
focus on verification and accreditation.

1a7284b9-3c14-46bc-8675-133eaa36e85b-0
00:13:19.360 --> 00:13:23.314
At the beginning of the webinar,
you also have already available the

1a7284b9-3c14-46bc-8675-133eaa36e85b-1
00:13:23.314 --> 00:13:27.613
recording from the previous webinar that
was dedicated to verification and

1a7284b9-3c14-46bc-8675-133eaa36e85b-2
00:13:27.613 --> 00:13:30.880
accreditation and also to a free
allocation methodology.

4a3ce1cf-a88e-43ce-ac08-4dbf7a616dfd-0
00:13:31.200 --> 00:13:34.360
Well, this is lie this quite important.

45675514-fab3-45f4-8a57-606f74f5576f-0
00:13:34.360 --> 00:13:38.160
This is dedicated to a new element which
is the functional unit.

d0b73b3f-d50b-47e0-ab3d-5670d52f50af-0
00:13:38.160 --> 00:13:43.267
Evanna has already mentioned it before
and this particular concept has sparked

d0b73b3f-d50b-47e0-ab3d-5670d52f50af-1
00:13:43.267 --> 00:13:47.470
many doubts and questions,
so we really need to stop and explain

d0b73b3f-d50b-47e0-ab3d-5670d52f50af-2
00:13:47.470 --> 00:13:48.440
this in detail.

a64625a4-9655-4185-a221-ef2890001754-0
00:13:48.680 --> 00:13:51.434
As it is defined in the implementing
regulation,

a64625a4-9655-4185-a221-ef2890001754-1
00:13:51.434 --> 00:13:55.931
the functional unit is the reference unit
to that is used to calculate embedded

a64625a4-9655-4185-a221-ef2890001754-2
00:13:55.931 --> 00:13:57.000
emissions of goods.

10da7cb9-7c97-4086-a300-ca7ad1b3f206-0
00:13:57.520 --> 00:14:01.890
And this concept was introduced to
address an issue of comparability that

10da7cb9-7c97-4086-a300-ca7ad1b3f206-1
00:14:01.890 --> 00:14:05.966
those coming from the transitional
methodology, as you may remember,

10da7cb9-7c97-4086-a300-ca7ad1b3f206-2
00:14:05.966 --> 00:14:09.864
I mean those that are familiar with the
transitional methodology,

10da7cb9-7c97-4086-a300-ca7ad1b3f206-3
00:14:09.864 --> 00:14:14.117
there was this concept of aggregated
goose category which determine the

10da7cb9-7c97-4086-a300-ca7ad1b3f206-4
00:14:14.117 --> 00:14:15.240
production process.

2d38beb0-5d4e-4851-95e8-3784a285ed59-0
00:14:15.360 --> 00:14:19.327
So therefore all goods that were within
the aggregated goose category,

2d38beb0-5d4e-4851-95e8-3784a285ed59-1
00:14:19.327 --> 00:14:23.741
the result was just that all of them had
the same specific embedded emissions,

2d38beb0-5d4e-4851-95e8-3784a285ed59-2
00:14:23.741 --> 00:14:26.480
since all came from the same production
process.

66657308-f8a1-4a19-af8e-adc236f24057-0
00:14:27.240 --> 00:14:30.882
However,
within this aggregated goods category you

66657308-f8a1-4a19-af8e-adc236f24057-1
00:14:30.882 --> 00:14:35.382
find heterogeneous goods not only in
terms of characteristics,

66657308-f8a1-4a19-af8e-adc236f24057-2
00:14:35.382 --> 00:14:38.240
but also in terms of embedded emissions.

41ff03e9-a878-401c-8449-0c1a46b17db2-0
00:14:38.720 --> 00:14:42.760
And at the same time,
the transitional methodology gave the

41ff03e9-a878-401c-8449-0c1a46b17db2-1
00:14:42.760 --> 00:14:46.800
flexibility to define further the levels
of disaggregation.

4b252ace-1f56-441b-b2a6-b5e83640e433-0
00:14:47.160 --> 00:14:50.531
These two elements,
the aggregated boost category and the

4b252ace-1f56-441b-b2a6-b5e83640e433-1
00:14:50.531 --> 00:14:54.659
flexibility to define further the
disaggregation within the aggregated

4b252ace-1f56-441b-b2a6-b5e83640e433-2
00:14:54.659 --> 00:14:57.624
boost category,
created some comparability issues,

4b252ace-1f56-441b-b2a6-b5e83640e433-3
00:14:57.624 --> 00:15:01.926
as the product categories were not
defined to allow comparability between

4b252ace-1f56-441b-b2a6-b5e83640e433-4
00:15:01.926 --> 00:15:06.693
goods produced by different installations
because those goods would be defined in

4b252ace-1f56-441b-b2a6-b5e83640e433-5
00:15:06.693 --> 00:15:09.600
many different ways as the operator would
choose.

529cdb47-4d86-4991-845d-a385475e60e7-0
00:15:09.960 --> 00:15:13.645
And from this issue,
the concept of the functional unit,

529cdb47-4d86-4991-845d-a385475e60e7-1
00:15:13.645 --> 00:15:18.882
some of you may recognize it as a as a
concept coming from life cycle assessment

529cdb47-4d86-4991-845d-a385475e60e7-2
00:15:18.882 --> 00:15:20.239
and carbon footprint.

c198e8f6-07b8-4464-982f-a5c49d16f892-0
00:15:20.400 --> 00:15:25.958
So we introduce this functional unit,
we adapted to to C Bam in a way that the

c198e8f6-07b8-4464-982f-a5c49d16f892-1
00:15:25.958 --> 00:15:30.040
functional unit cover all goods within a
common category.

346186d9-7c5f-4159-ad99-f4efc8af9dd5-0
00:15:30.360 --> 00:15:34.568
And in the case of C bam,
this common category is established as

346186d9-7c5f-4159-ad99-f4efc8af9dd5-1
00:15:34.568 --> 00:15:39.423
the 8 digit CN codes since they are a
good descriptor of goods in terms of

346186d9-7c5f-4159-ad99-f4efc8af9dd5-2
00:15:39.423 --> 00:15:41.560
function quality and performance.

61334df0-f894-45f4-8497-2305cccf32a1-0
00:15:41.560 --> 00:15:44.405
OK,
CN codes maybe not perfect in all cases,

61334df0-f894-45f4-8497-2305cccf32a1-1
00:15:44.405 --> 00:15:48.200
but they are sufficient and appropriate
for civil purposes.

b7b880ad-69ac-4130-9a88-d505a8334e47-0
00:15:48.640 --> 00:15:53.423
So the general rule is that the
functional unit is defined as tons of

b7b880ad-69ac-4130-9a88-d505a8334e47-1
00:15:53.423 --> 00:15:55.200
goods within the same CNK.

db1815d8-6021-4513-8048-96d8a0026aba-0
00:15:55.520 --> 00:16:00.489
But there are some special cases where
first electricity for obvious reason for

db1815d8-6021-4513-8048-96d8a0026aba-1
00:16:00.489 --> 00:16:00.800
sure.

c5ad230a-622e-47f8-a98f-f82220954873-0
00:16:00.800 --> 00:16:03.520
I mean,
I have to measure 10 kilowatt hours.

448d7530-63e6-4019-a202-4039ea02af1b-0
00:16:04.640 --> 00:16:08.188
But apart from that,
we have also the cases of cement and

448d7530-63e6-4019-a202-4039ea02af1b-1
00:16:08.188 --> 00:16:12.164
fertilizers whose function,
quality and performance are strongly

448d7530-63e6-4019-a202-4039ea02af1b-2
00:16:12.164 --> 00:16:15.040
correlated to the content of certain
elements.

55649ac9-6c20-4a70-af4e-363927fc430f-0
00:16:15.440 --> 00:16:20.699
The clinker content in the case of cement
and the nitrogen content in the case of

55649ac9-6c20-4a70-af4e-363927fc430f-1
00:16:20.699 --> 00:16:25.959
fertilizers and the composition of these
components somebody see in a significant

55649ac9-6c20-4a70-af4e-363927fc430f-2
00:16:25.959 --> 00:16:30.000
range for for cement product products and
fertilizer products.

10c4a58d-64c1-41ea-8817-6bed377041c3-0
00:16:30.040 --> 00:16:33.022
So for this reason,
the functional unit is defined as the

10c4a58d-64c1-41ea-8817-6bed377041c3-1
00:16:33.022 --> 00:16:37.291
content of clinker in the case of cement
and the content of nitrogen in the in the

10c4a58d-64c1-41ea-8817-6bed377041c3-2
00:16:37.291 --> 00:16:38.319
case of fertilizers.

dabd3163-dfbb-4508-ad0f-ce8a8d71be45-0
00:16:38.560 --> 00:16:42.200
In practice,
what what that this means for you.

6077c1a2-3d48-483e-94cb-1a429cdfdd11-0
00:16:43.120 --> 00:16:47.476
So the functional unit is a reference
unit to measure the production of each

6077c1a2-3d48-483e-94cb-1a429cdfdd11-1
00:16:47.476 --> 00:16:51.040
production process or the delivery of
each production process.

9f49f91a-7f69-45c9-a061-40d4c748daa6-0
00:16:51.240 --> 00:16:54.565
So in other words,
it is the unit to measure the activity

9f49f91a-7f69-45c9-a061-40d4c748daa6-1
00:16:54.565 --> 00:16:56.400
level of the production process.

df238152-8459-4baf-bbc0-2749eb17892a-0
00:16:56.680 --> 00:16:59.340
Since the CN codes define the production
process,

df238152-8459-4baf-bbc0-2749eb17892a-1
00:16:59.340 --> 00:17:02.000
the functional unit defines a production
process.

f5b9e98d-c41a-43d7-ae2f-9d54fb9b9e35-0
00:17:02.000 --> 00:17:06.520
There cannot be more processes than CN
codes are produced in an installation.

6d6c0b15-34f0-476b-a6a9-40b8901e2169-0
00:17:07.400 --> 00:17:12.053
And then the third consequence is that
the desaggregation per production route

6d6c0b15-34f0-476b-a6a9-40b8901e2169-1
00:17:12.053 --> 00:17:16.647
that was allowed in the transitional
methodology is no longer allowed because

6d6c0b15-34f0-476b-a6a9-40b8901e2169-2
00:17:16.647 --> 00:17:19.356
the functional unit is by its own
definition,

6d6c0b15-34f0-476b-a6a9-40b8901e2169-3
00:17:19.356 --> 00:17:23.479
divide by function quality and
performance of a category of products.

c8819c3e-b1c9-4935-8b16-7166a90410d1-0
00:17:24.120 --> 00:17:27.214
So if we add the disaggregation per
production route,

c8819c3e-b1c9-4935-8b16-7166a90410d1-1
00:17:27.214 --> 00:17:29.793
that wouldn't take an additional
definition,

c8819c3e-b1c9-4935-8b16-7166a90410d1-2
00:17:29.793 --> 00:17:33.920
a duplication of the functional unit,
an additional definition based on

c8819c3e-b1c9-4935-8b16-7166a90410d1-3
00:17:33.920 --> 00:17:37.760
criteria that has no relation to function
quality and performance.

7309c3d3-b5c6-4516-ae60-37d233dd9138-0
00:17:37.760 --> 00:17:41.320
That is the core of the definition of the
functional unit.

3291cbc7-aa37-4bff-a6e1-d62ac9df45fd-0
00:17:41.960 --> 00:17:44.804
In this slide,
what we want to to show is a bit more in

3291cbc7-aa37-4bff-a6e1-d62ac9df45fd-1
00:17:44.804 --> 00:17:45.160
detail.

4a8f31bb-33e4-4f07-89f9-137972b4f1b5-0
00:17:45.160 --> 00:17:49.767
This special functional units that are
linked to cement and fertilizers,

4a8f31bb-33e4-4f07-89f9-137972b4f1b5-1
00:17:49.767 --> 00:17:54.942
how to be monitored in a cement plateau
or a fertilizer plant that different that

4a8f31bb-33e4-4f07-89f9-137972b4f1b5-2
00:17:54.942 --> 00:17:57.720
produces goods with different
compositions.

2083387a-1303-4195-82ad-b25e29cd96d8-0
00:17:57.720 --> 00:18:02.540
As I said before, the clinker contents,
the tons of clinker content in the cement

2083387a-1303-4195-82ad-b25e29cd96d8-1
00:18:02.540 --> 00:18:04.480
goods is now the functional unit.

5ae94bfe-d78c-4cb5-9495-83033223a12c-0
00:18:04.520 --> 00:18:09.669
That means that the installation operator
has to monitor the clinker to seven ratio

5ae94bfe-d78c-4cb5-9495-83033223a12c-1
00:18:09.669 --> 00:18:13.899
to know the clinker contained in the
production and this will be the

5ae94bfe-d78c-4cb5-9495-83033223a12c-2
00:18:13.899 --> 00:18:14.880
functional unit.

74e04b5e-6432-4593-ab65-07cf908865a9-0
00:18:15.400 --> 00:18:19.560
And that means that the emissions of the
production process are attributed to

74e04b5e-6432-4593-ab65-07cf908865a9-1
00:18:19.560 --> 00:18:23.080
these tons of clinker in the cement
produced in the installation.

08f7fe1b-22f3-46ae-a0fb-e17167fea89e-0
00:18:23.880 --> 00:18:28.133
So this way the embedded emissions are
linked to the specific component that

08f7fe1b-22f3-46ae-a0fb-e17167fea89e-1
00:18:28.133 --> 00:18:32.332
provides both the quality and the
performance characteristics of the cement

08f7fe1b-22f3-46ae-a0fb-e17167fea89e-2
00:18:32.332 --> 00:18:36.200
and also is very much correlated to the
embedded emissions of cement.

29f07616-c408-4e87-9b1f-75c5541a0766-0
00:18:36.200 --> 00:18:39.314
Because as you may know,
the clinker is actually the precursors

29f07616-c408-4e87-9b1f-75c5541a0766-1
00:18:39.314 --> 00:18:43.160
with with which contributes more to the
specific embedded emissions of cement.

586a06bb-a7d7-4677-8b09-cd92e14ee3c9-0
00:18:44.000 --> 00:18:48.360
And similarly for fertilizer,
the operator needs to monitor the total

586a06bb-a7d7-4677-8b09-cd92e14ee3c9-1
00:18:48.360 --> 00:18:52.844
nitrogen content of the fertilizers
within a Cienco and attribute these

586a06bb-a7d7-4677-8b09-cd92e14ee3c9-2
00:18:52.844 --> 00:18:56.520
emissions to this functional unit to the
nitrogen content.

d723fa6c-23fa-4daf-a238-4d2da7ca9eea-0
00:18:57.280 --> 00:19:02.076
And the same once you have the specific
embedded emissions where kilograms of

d723fa6c-23fa-4daf-a238-4d2da7ca9eea-1
00:19:02.076 --> 00:19:07.241
nitrogen when you have different products
with different composition is a matter of

d723fa6c-23fa-4daf-a238-4d2da7ca9eea-2
00:19:07.241 --> 00:19:11.976
multiplying the specific emission,
but by the different contents of nitrogen

d723fa6c-23fa-4daf-a238-4d2da7ca9eea-3
00:19:11.976 --> 00:19:13.760
of the different composition.

e903abf2-3845-47e4-97e1-f05421d85e74-0
00:19:13.760 --> 00:19:16.120
So that's they say the beauty in this
case.

0d69fd9b-17d2-46d3-b93f-8dadefb51707-0
00:19:16.120 --> 00:19:20.080
I'm going to use this word because I
think it is it fits well with with Siva.

76a23a57-aa99-4d42-8d4b-fcf2519b0feb-0
00:19:20.560 --> 00:19:25.340
Now I would like to to explain because
you you may have seen in the implementing

76a23a57-aa99-4d42-8d4b-fcf2519b0feb-1
00:19:25.340 --> 00:19:29.826
regulation in the article that is
specifically dedicated to functional unit

76a23a57-aa99-4d42-8d4b-fcf2519b0feb-2
00:19:29.826 --> 00:19:34.311
that there is in the case of fertilizers
A distinction for certain CN codes

76a23a57-aa99-4d42-8d4b-fcf2519b0feb-3
00:19:34.311 --> 00:19:38.974
applying kilograms of nitrogen and all
the CN codes applying something that is

76a23a57-aa99-4d42-8d4b-fcf2519b0feb-4
00:19:38.974 --> 00:19:41.040
is indicated as supplementary unit.

4981c9f1-8323-4dd4-8b96-6fb37695c133-0
00:19:41.440 --> 00:19:46.975
This is because most fertilizers that are
in Chapter 31 of the Combined

4981c9f1-8323-4dd4-8b96-6fb37695c133-1
00:19:46.975 --> 00:19:52.588
nomenclature regulation have a
supplementary unit that is specify that's

4981c9f1-8323-4dd4-8b96-6fb37695c133-2
00:19:52.588 --> 00:19:54.280
kilograms of nitrogen.

6953c1cb-9801-4d9d-bcf2-664337e45bb6-0
00:19:55.680 --> 00:19:59.287
So this is something since it's a
supplementary unit within the combined

6953c1cb-9801-4d9d-bcf2-664337e45bb6-1
00:19:59.287 --> 00:20:01.709
nomenclature,
this is a unit of the kilograms of

6953c1cb-9801-4d9d-bcf2-664337e45bb6-2
00:20:01.709 --> 00:20:05.120
nitrogen is something that the importers
have to declare at customs.

d442b501-84f3-406c-b9fe-542d28c565b2-0
00:20:05.200 --> 00:20:09.095
In those cases,
to make use of the declaration in customs,

d442b501-84f3-406c-b9fe-542d28c565b2-1
00:20:09.095 --> 00:20:12.792
the functional unit is expressed as
supplementary unit,

d442b501-84f3-406c-b9fe-542d28c565b2-2
00:20:12.792 --> 00:20:17.480
but only for those that have this in the
in the combined nomenclature.

24d13826-4405-485b-84ae-8fa94fac1572-0
00:20:18.160 --> 00:20:21.668
However,
there are some fertilizers in the chapter

24d13826-4405-485b-84ae-8fa94fac1572-1
00:20:21.668 --> 00:20:27.034
31 that do not have supplementary unit,
but also the chemicals in Chapter 28,

24d13826-4405-485b-84ae-8fa94fac1572-2
00:20:27.034 --> 00:20:30.680
which are precursors of fertilizers such
as ammonia.

5ea87ca8-a165-4c39-bf32-579e7c52f617-0
00:20:31.280 --> 00:20:33.120
They don't have also supplementary units.

9a783cd4-9d46-4452-95af-d3fb62fcdc5f-0
00:20:33.120 --> 00:20:36.307
So what we did,
they simply used to distinguish them and

9a783cd4-9d46-4452-95af-d3fb62fcdc5f-1
00:20:36.307 --> 00:20:40.445
assigned the functional unit in the same
terms as the supplementary unit,

9a783cd4-9d46-4452-95af-d3fb62fcdc5f-2
00:20:40.445 --> 00:20:43.799
but without naming supplementary unit
because they are not.

2b15d923-b6d5-4e0e-99a2-f2c98700cf5b-0
00:20:44.040 --> 00:20:47.607
So for them this the functionality is
kilograms of nitrogen,

2b15d923-b6d5-4e0e-99a2-f2c98700cf5b-1
00:20:47.607 --> 00:20:51.760
but the result is that all fertilizer
products have the same function.

26afc4ea-fc1b-44f2-8026-d77aeda2e019-0
00:20:52.320 --> 00:20:55.780
Now that I have finished with the
functional unit,

26afc4ea-fc1b-44f2-8026-d77aeda2e019-1
00:20:55.780 --> 00:20:58.902
which is a bit complex to to explain
another,

26afc4ea-fc1b-44f2-8026-d77aeda2e019-2
00:20:58.902 --> 00:21:03.245
we stop a bit before the production
process that is also a bit,

26afc4ea-fc1b-44f2-8026-d77aeda2e019-3
00:21:03.245 --> 00:21:06.435
let's say tricky just to something is
lighter,

26afc4ea-fc1b-44f2-8026-d77aeda2e019-4
00:21:06.435 --> 00:21:11.321
which is the change that you may have
seen in the methodology about the

26afc4ea-fc1b-44f2-8026-d77aeda2e019-5
00:21:11.321 --> 00:21:12.000
reporting.

3ececc48-a403-4c69-b710-80fa0030a351-0
00:21:13.280 --> 00:21:16.039
As you may remember in the transitional
period,

3ececc48-a403-4c69-b710-80fa0030a351-1
00:21:16.039 --> 00:21:18.568
the calendar year was the reporting
period,

3ececc48-a403-4c69-b710-80fa0030a351-2
00:21:18.568 --> 00:21:22.305
but there were other options that could
be used if if justified,

3ececc48-a403-4c69-b710-80fa0030a351-3
00:21:22.305 --> 00:21:25.639
then the declarant had to report
quarterly their imports,

3ececc48-a403-4c69-b710-80fa0030a351-4
00:21:25.639 --> 00:21:30.352
but the specific embedded emissions were
based on on on a reporting year that was

3ececc48-a403-4c69-b710-80fa0030a351-5
00:21:30.352 --> 00:21:31.560
usually the calendar.

fca56c63-146f-40d3-a153-8fd4f96deeec-0
00:21:31.800 --> 00:21:33.720
Now in the definitive.

de3d56b7-442d-43cf-b48e-76046806fb09-0
00:21:33.840 --> 00:21:36.400
This is changed a bit.

677c8caa-9b4e-44b8-aec7-1bd75c7af5cb-0
00:21:36.400 --> 00:21:41.240
So the calendar year is used as fixed
reporting period.

165f5bf3-e6e8-4867-a0a6-67576bfeb715-0
00:21:41.240 --> 00:21:44.240
So we don't allow those different options
is the calendar year.

261d1d7d-62e8-4758-ba2e-497fda1c87ae-0
00:21:44.560 --> 00:21:50.912
And also we have this let's say 2
situations because of the initiation of

261d1d7d-62e8-4758-ba2e-497fda1c87ae-1
00:21:50.912 --> 00:21:52.200
the definitive.

a764b65c-5e13-4da1-bb4d-cfcc33e8b75c-0
00:21:52.200 --> 00:21:56.458
So if a good is imported during the year
2026,

a764b65c-5e13-4da1-bb4d-cfcc33e8b75c-1
00:21:56.458 --> 00:22:01.080
then the reporting period has to be the
year 2026.

866f4f27-4f52-4f2b-a292-48fffd154eec-0
00:22:01.080 --> 00:22:02.480
I mean there are there is no other option.

72745362-9e44-4361-90b4-65552368b6a4-0
00:22:02.840 --> 00:22:08.987
This is because because there is no
verification before this this year but

72745362-9e44-4361-90b4-65552368b6a4-1
00:22:08.987 --> 00:22:11.200
then afterwards 27 onwards.

32e8511e-3871-4e01-8b46-86a330f979b1-0
00:22:11.440 --> 00:22:15.677
The reporting period is by default the
calendar year during which the wood was

32e8511e-3871-4e01-8b46-86a330f979b1-1
00:22:15.677 --> 00:22:16.160
imported.

22b56112-c140-4b31-be19-5e62c4cc9b43-0
00:22:16.640 --> 00:22:22.226
But there is the option also if there is
sufficient evidence to identify the

22b56112-c140-4b31-be19-5e62c4cc9b43-1
00:22:22.226 --> 00:22:26.942
actual time of production,
then the reporting period can be that

22b56112-c140-4b31-be19-5e62c4cc9b43-2
00:22:26.942 --> 00:22:30.860
year let's say,
but by default is always the calendar

22b56112-c140-4b31-be19-5e62c4cc9b43-3
00:22:30.860 --> 00:22:33.400
year where the woods were imported.

073cedae-043b-465b-9ac3-f6af09be58de-0
00:22:33.680 --> 00:22:37.840
If proof can be provided then the actual
year of production.

b0b6a2ef-799e-4216-93b4-b2680aea6aeb-0
00:22:38.320 --> 00:22:41.240
So now we are going to speak about the
the production process.

1a4a730f-b370-4735-9327-93a0ad2ef983-0
00:22:41.240 --> 00:22:42.640
This concept is not new.

c3b30b35-f204-43c7-b229-b60a76e3bd29-0
00:22:42.640 --> 00:22:46.440
I mean this is was already part of the
transitional period.

2f08dded-7bc0-4acd-b0ed-cb23895ff5f7-0
00:22:46.440 --> 00:22:49.320
Actually is a key element to understand
the methodology.

ae378ce0-a974-4fdf-840e-da3d7f26050a-0
00:22:49.720 --> 00:22:54.551
Probably some people that think that the
methodologies have it complicated or

ae378ce0-a974-4fdf-840e-da3d7f26050a-1
00:22:54.551 --> 00:22:59.383
difficult to grasp is because they don't
have clear the concept of the of the

ae378ce0-a974-4fdf-840e-da3d7f26050a-2
00:22:59.383 --> 00:23:00.560
production process.

7afe5acd-3ccd-44f1-bb62-1169cac0b06c-0
00:23:00.680 --> 00:23:05.499
So we are going now to explain the
difference between the the transitional

7afe5acd-3ccd-44f1-bb62-1169cac0b06c-1
00:23:05.499 --> 00:23:08.520
and the definitive,
which are quite important.

8cfa400a-74d3-48ba-9b2d-64047240561c-0
00:23:08.520 --> 00:23:11.044
And I hope that with this explanation,
you,

8cfa400a-74d3-48ba-9b2d-64047240561c-1
00:23:11.044 --> 00:23:15.347
those that were a bit lost in the
transitional methodology will understand

8cfa400a-74d3-48ba-9b2d-64047240561c-2
00:23:15.347 --> 00:23:15.520
it.

1c759d7a-82ce-41b9-931d-61d61c3346e1-0
00:23:15.520 --> 00:23:19.800
And also you will understand the the
changes in the in the definitive.

bbf3b718-62b8-4107-aa3b-1bd44594235d-0
00:23:20.480 --> 00:23:24.316
So I already,
I already introduced this habit with the

bbf3b718-62b8-4107-aa3b-1bd44594235d-1
00:23:24.316 --> 00:23:28.920
functional unit because it's very much
related in the decisional.

db9b3feb-0e51-49a1-ac17-3d1e3c79b882-0
00:23:28.920 --> 00:23:32.405
As I said,
the aggregated goods category define the

db9b3feb-0e51-49a1-ac17-3d1e3c79b882-1
00:23:32.405 --> 00:23:37.098
production process by fault,
but they could be desegregated more into

db9b3feb-0e51-49a1-ac17-3d1e3c79b882-2
00:23:37.098 --> 00:23:38.640
other production lines.

af5a2308-940a-4ff7-becc-c635fe12c464-0
00:23:39.000 --> 00:23:42.528
There was also this rule that if there
were different production routes,

af5a2308-940a-4ff7-becc-c635fe12c464-1
00:23:42.528 --> 00:23:45.960
also the desegregation per production
route of the production process.

5d8fe022-350f-46eb-8de7-1447f2f9abe4-0
00:23:46.480 --> 00:23:50.124
I don't explain again,
this brought comparability issues as I

5d8fe022-350f-46eb-8de7-1447f2f9abe4-1
00:23:50.124 --> 00:23:54.650
said before and this is basically mainly
the the main difference between the

5d8fe022-350f-46eb-8de7-1447f2f9abe4-2
00:23:54.650 --> 00:23:57.530
transitional methodology and the
definitive one,

5d8fe022-350f-46eb-8de7-1447f2f9abe4-3
00:23:57.530 --> 00:24:02.350
which is that the production process is
no longer defined by the aggregated goose

5d8fe022-350f-46eb-8de7-1447f2f9abe4-4
00:24:02.350 --> 00:24:02.880
category.

73b0bfb8-9ed5-40e3-b88e-5240314cb0ef-0
00:24:04.000 --> 00:24:07.956
We don't allow the flexibility that the
operator can choose another

73b0bfb8-9ed5-40e3-b88e-5240314cb0ef-1
00:24:07.956 --> 00:24:10.400
disaggregation level or a production line.

30843634-a014-475b-8345-18bac1acac52-0
00:24:10.440 --> 00:24:15.737
But there is a fixed aggregation level or
disaggregation level depending where you

30843634-a014-475b-8345-18bac1acac52-1
00:24:15.737 --> 00:24:16.440
are seeing.

e71ce954-2233-45c1-a5c8-c87cdf2ca4bf-0
00:24:17.120 --> 00:24:20.760
So which is the functional unit which at
the end is defined by the sync.

2959ad26-5f0b-4683-bb9e-7f8604808538-0
00:24:21.120 --> 00:24:24.976
Just a note for for later is that the
aggregated goose category is no longer

2959ad26-5f0b-4683-bb9e-7f8604808538-1
00:24:24.976 --> 00:24:26.880
used to define the production process.

50c6f168-4257-4616-8207-393db6d3f2a8-0
00:24:27.000 --> 00:24:27.240
Right?

ea82f7d5-1e9d-41ec-b071-3ef1996eec27-0
00:24:27.680 --> 00:24:31.399
But this is still retained in the
definitive methodology for the purpose of

ea82f7d5-1e9d-41ec-b071-3ef1996eec27-1
00:24:31.399 --> 00:24:32.280
system boundaries.

c1843fff-2c50-40e8-9733-ee5cd416d23d-0
00:24:32.280 --> 00:24:35.840
But but my colleague Julie will explain
this this later.

9d65da43-f1de-44df-a475-5dbb96f8a603-0
00:24:36.200 --> 00:24:39.440
This is 1 change production process
linked to CN codes.

6ed528f1-51e5-4a5e-83ad-08a7c9561e6d-0
00:24:39.440 --> 00:24:43.962
But apart from this change,
this change is also accompanied by other

6ed528f1-51e5-4a5e-83ad-08a7c9561e6d-1
00:24:43.962 --> 00:24:49.402
rules that allow the recognition of that
the fact that some production process can

6ed528f1-51e5-4a5e-83ad-08a7c9561e6d-2
00:24:49.402 --> 00:24:53.400
deliver different types of goods in terms
of single CN code.

a553c5f7-1d0d-48fa-93d5-696283ce9bd7-0
00:24:53.440 --> 00:24:56.000
And you may have seen it already in the
definitive.

3f6bf513-71a5-4279-88fc-a345975ec68a-0
00:24:56.000 --> 00:24:58.440
Which is the multifunctional process.

098d778d-9774-4cfd-aa48-7b9ce51ee844-0
00:24:59.040 --> 00:25:04.163
So multifunctional process together with
some rules that require the grouping of

098d778d-9774-4cfd-aa48-7b9ce51ee844-1
00:25:04.163 --> 00:25:06.440
CN codes under centre circumstances.

5b38b3ad-f59d-4b57-a928-004f6cb8d9c0-0
00:25:06.920 --> 00:25:12.060
This is something that is basically the
core change of the definitive methodology

5b38b3ad-f59d-4b57-a928-004f6cb8d9c0-1
00:25:12.060 --> 00:25:15.760
in terms of production process compared
to the transition.

be58a1a9-c810-41cd-a20e-ef6f5d777191-0
00:25:16.160 --> 00:25:17.760
Now next slide please.

12e49648-a09c-4aae-baba-896df9180939-0
00:25:17.840 --> 00:25:22.604
I think this will be much better
understood with the first example of the

12e49648-a09c-4aae-baba-896df9180939-1
00:25:22.604 --> 00:25:25.501
webinar,
which is a schematic diagram of the

12e49648-a09c-4aae-baba-896df9180939-2
00:25:25.501 --> 00:25:28.720
production processes involved in the
steel woods.

eff9ec01-a58b-476a-97dc-cae0fe412843-0
00:25:29.760 --> 00:25:31.960
And I think that is what all that I said.

0b3c1916-ef05-4cf7-9520-2b336246f123-0
00:25:31.960 --> 00:25:35.240
Probably it would be much easier to see
in this diagram.

3350d4b8-150d-4aee-82ac-541676d395bd-0
00:25:35.560 --> 00:25:40.261
So this is as you see is a complete
diagram which covers from the production

3350d4b8-150d-4aee-82ac-541676d395bd-1
00:25:40.261 --> 00:25:45.147
of the center or to the manufacture of
tubes and all the different intermediate

3350d4b8-150d-4aee-82ac-541676d395bd-2
00:25:45.147 --> 00:25:47.040
steps that are between the two.

cd621f30-8b18-4d66-8651-47136d498ca3-0
00:25:47.680 --> 00:25:52.711
It also covers the production of federal
alloys and also the situation where waste

cd621f30-8b18-4d66-8651-47136d498ca3-1
00:25:52.711 --> 00:25:55.440
gases are used to to to produce
electricity.

debe6444-690f-4e55-9eaf-a5b4716f0354-0
00:25:55.560 --> 00:25:59.446
As you can see also in the middle of the
diagram, this is important,

debe6444-690f-4e55-9eaf-a5b4716f0354-1
00:25:59.446 --> 00:26:03.502
you have the production process 3,
which is the one that delivers crude

debe6444-690f-4e55-9eaf-a5b4716f0354-2
00:26:03.502 --> 00:26:03.840
steel.

9819e6ac-9d40-40ee-a755-0e3c93fe3292-0
00:26:04.040 --> 00:26:09.600
The production process is defined by the
delivered good in terms of CN code.

6d592fef-b438-4f5e-b767-da74cc57efb4-0
00:26:09.640 --> 00:26:14.869
So crude steel has a specific CN code if
it's if it's producing primary forms,

6d592fef-b438-4f5e-b767-da74cc57efb4-1
00:26:14.869 --> 00:26:17.120
let's say ingots, slabs, etcetera.

f04b18c1-46a9-4f26-81f5-4087211f6504-0
00:26:17.720 --> 00:26:22.734
So that production that goods is linked
to the production process 3 and the

f04b18c1-46a9-4f26-81f5-4087211f6504-1
00:26:22.734 --> 00:26:27.683
production process 3 is covering both
production routes that happen in the

f04b18c1-46a9-4f26-81f5-4087211f6504-2
00:26:27.683 --> 00:26:31.510
installation, OK,
both the primary and also the secondary

f04b18c1-46a9-4f26-81f5-4087211f6504-3
00:26:31.510 --> 00:26:34.479
production route through electrical
furnace.

b67c3e76-9472-49fa-8560-09debe6a589c-0
00:26:34.480 --> 00:26:38.629
So this was this is basically a one
example of how this not allowing

b67c3e76-9472-49fa-8560-09debe6a589c-1
00:26:38.629 --> 00:26:43.560
production route this aggregation would
work in in this example, repeating again,

b67c3e76-9472-49fa-8560-09debe6a589c-2
00:26:43.560 --> 00:26:48.552
the key thing that that that you need to
understand is that the production process

b67c3e76-9472-49fa-8560-09debe6a589c-3
00:26:48.552 --> 00:26:51.919
as you see are defined by the goods that
are delivered.

d92668cd-216a-48f3-bbf8-55c13693c143-0
00:26:52.000 --> 00:26:56.400
And that those are goods are all we found
within the same CN codes.

607ad086-a2d4-478f-9010-907c3742f2c8-0
00:26:56.400 --> 00:27:01.935
We will speak in later on with this with
this example also about how to group CN

607ad086-a2d4-478f-9010-907c3742f2c8-1
00:27:01.935 --> 00:27:04.600
codes because there are rules for that.

e5962720-d94a-4e34-8d85-8cd01fb239f7-0
00:27:05.240 --> 00:27:09.567
But golden rule to remember is that the
goods produced in an installation are to

e5962720-d94a-4e34-8d85-8cd01fb239f7-1
00:27:09.567 --> 00:27:13.200
be grouped under ACN code and then
identify the production process.

b186946e-9846-4b22-b088-6c523a367874-0
00:27:13.840 --> 00:27:16.600
There can never be more production
process than seeing codes.

47335e55-3a86-4a6f-9a40-d624e2b75bd4-0
00:27:16.840 --> 00:27:17.600
There can be less.

588dd128-35cb-497b-921f-c5825965ff31-0
00:27:17.840 --> 00:27:22.640
But for sure probably that's most
situations are like that, but never more.

2236e648-6665-4d17-af15-19cae266b9a9-0
00:27:22.960 --> 00:27:26.192
So now,
I mean we are going just to refresh the

2236e648-6665-4d17-af15-19cae266b9a9-1
00:27:26.192 --> 00:27:31.647
memories of those that are familiar with
the transitional methodology because we

2236e648-6665-4d17-af15-19cae266b9a9-2
00:27:31.647 --> 00:27:37.102
are going to speak just about the Bible
approach that this was the term to refer

2236e648-6665-4d17-af15-19cae266b9a9-3
00:27:37.102 --> 00:27:41.615
to what in the definitive methodology is
established in Article 4,

2236e648-6665-4d17-af15-19cae266b9a9-4
00:27:41.615 --> 00:27:46.935
that is the possibility to create a joint
production process that also include

2236e648-6665-4d17-af15-19cae266b9a9-5
00:27:46.935 --> 00:27:49.360
intermediate products or precursors.

4fb182b6-7dbc-4c9e-94fb-cc858a084ac6-0
00:27:49.360 --> 00:27:53.752
So basically Article 4 says that when
were precursors relevant for complex,

4fb182b6-7dbc-4c9e-94fb-cc858a084ac6-1
00:27:53.752 --> 00:27:58.201
complex goods are produced in the same
installation as the complex goods and

4fb182b6-7dbc-4c9e-94fb-cc858a084ac6-2
00:27:58.201 --> 00:28:02.940
where the respective precursors have not
transferred out for sale or use in other

4fb182b6-7dbc-4c9e-94fb-cc858a084ac6-3
00:28:02.940 --> 00:28:06.292
production process,
then the production of precursors and

4fb182b6-7dbc-4c9e-94fb-cc858a084ac6-4
00:28:06.292 --> 00:28:09.760
complex goods may be covered by a joint
production process.

a86d0f91-2da5-4383-90d2-3b0da65ab5db-0
00:28:10.480 --> 00:28:14.793
And this is good because then the
monitoring is only on one production

a86d0f91-2da5-4383-90d2-3b0da65ab5db-1
00:28:14.793 --> 00:28:15.280
process.

8021dffc-ea49-45d1-b5eb-3751ac9cfb89-0
00:28:16.320 --> 00:28:20.802
So this is again a lot of words that this
much easier easier to see in the in the

8021dffc-ea49-45d1-b5eb-3751ac9cfb89-1
00:28:20.802 --> 00:28:21.240
diagram.

7a480761-b65d-4813-96dd-720e4347bbdb-0
00:28:21.520 --> 00:28:26.670
So basically what what this rule means is
that for example,

7a480761-b65d-4813-96dd-720e4347bbdb-1
00:28:26.670 --> 00:28:33.451
if crude steel that is was producing
production process in the in the previous

7a480761-b65d-4813-96dd-720e4347bbdb-2
00:28:33.451 --> 00:28:37.400
slide is all used in the hot rolling
process.

7899dec8-971f-4c29-8c2a-44e819a6f4fe-0
00:28:37.560 --> 00:28:41.384
So it's not sold outside of the
installation or used in another

7899dec8-971f-4c29-8c2a-44e819a6f4fe-1
00:28:41.384 --> 00:28:42.520
production process.

a734c88a-62a7-4277-b7e0-1f7d6d4c6c6d-0
00:28:43.640 --> 00:28:48.732
Both production processes can be,
let's say put together in a in one single

a734c88a-62a7-4277-b7e0-1f7d6d4c6c6d-1
00:28:48.732 --> 00:28:53.824
production process that covers the
production of crude steel and define the

a734c88a-62a7-4277-b7e0-1f7d6d4c6c6d-2
00:28:53.824 --> 00:28:57.040
final good that would be the same as say
hotel.

c454d1ba-1237-4bf5-96d1-931511e41a59-0
00:28:57.440 --> 00:29:05.171
So that would be the idea put in practice
and this can be extended as much as it

c454d1ba-1237-4bf5-96d1-931511e41a59-1
00:29:05.171 --> 00:29:05.840
can be.

a0837ffa-6029-4193-ad3c-0a92773def17-0
00:29:05.840 --> 00:29:07.880
I mean depending on the situation of the
installation.

e0532165-f690-45b4-91c9-7f6f95470b68-0
00:29:07.960 --> 00:29:11.590
I mean, for example,
if we continue a bit upstream,

e0532165-f690-45b4-91c9-7f6f95470b68-1
00:29:11.590 --> 00:29:17.176
if all the pig iron that is produced in
production process 3 is consumed in the

e0532165-f690-45b4-91c9-7f6f95470b68-2
00:29:17.176 --> 00:29:19.760
production process from 2:00 to 3:00.

93512f6f-9a0b-442e-99a8-f447ad67599f-0
00:29:20.400 --> 00:29:24.389
So then production process two and three
could be put together in only one

93512f6f-9a0b-442e-99a8-f447ad67599f-1
00:29:24.389 --> 00:29:25.400
production process.

2c7f48b4-4159-47e0-9135-3c2072b65174-0
00:29:25.640 --> 00:29:31.166
So then the missions of that production
process will be all attributed to the end

2c7f48b4-4159-47e0-9135-3c2072b65174-1
00:29:31.166 --> 00:29:34.200
final product of of that production
process.

2697c030-4b83-4374-a9cb-4ad01d3fba57-0
00:29:34.760 --> 00:29:36.280
I think is more or less clear.

d313c2d6-8267-4c68-9557-f00a92b68377-0
00:29:36.520 --> 00:29:41.159
This is something quite new,
which is the concept of multifunctional

d313c2d6-8267-4c68-9557-f00a92b68377-1
00:29:41.159 --> 00:29:46.000
process and in a way replaces the concept
of aggregated goose category.

1423858e-cdc6-4ebe-b83e-49ab24448688-0
00:29:46.640 --> 00:29:51.010
So instead of this,
the rule of the aggregated goose category

1423858e-cdc6-4ebe-b83e-49ab24448688-1
00:29:51.010 --> 00:29:55.240
that was like one fits all rule common to
any installation.

2f8ff7dd-e468-4988-87ca-2bf1deb6e285-0
00:29:55.600 --> 00:30:01.503
The definitive methodology provides rules
for grouping CN codes for two reasons,

2f8ff7dd-e468-4988-87ca-2bf1deb6e285-1
00:30:01.503 --> 00:30:05.439
mainly to to simplify the monitoring and
calculation,

2f8ff7dd-e468-4988-87ca-2bf1deb6e285-2
00:30:05.439 --> 00:30:11.270
but also to improve certain details in
the descriptors of the CN codes that may

2f8ff7dd-e468-4988-87ca-2bf1deb6e285-3
00:30:11.270 --> 00:30:14.040
not fit completely to the needs of C1.

06847aa4-e5e3-478a-89b9-b96c487997ea-0
00:30:14.200 --> 00:30:16.840
This is written in Article 48.

b0b47e02-0756-4e46-a4bb-72591c292850-0
00:30:18.240 --> 00:30:21.888
So it says that were goods to which a
different functional units apply are

b0b47e02-0756-4e46-a4bb-72591c292850-1
00:30:21.888 --> 00:30:23.640
produced through the same processes.

f1a97cb1-622f-42d8-8b0d-30a183c9b188-0
00:30:23.640 --> 00:30:27.000
The operator may determine a single multi
functional production process.

f86f87e5-a207-470c-aa74-5ae34e71c436-0
00:30:27.320 --> 00:30:30.956
In that case,
attribution rules in accordance to OK

f86f87e5-a207-470c-aa74-5ae34e71c436-1
00:30:30.956 --> 00:30:36.620
something in the annex are to be applied
in situations specified in point A four

f86f87e5-a207-470c-aa74-5ae34e71c436-2
00:30:36.620 --> 00:30:37.600
of that annex.

f5840cba-db5f-46fd-9366-8ac3009e9add-0
00:30:37.600 --> 00:30:38.720
We will go later there.

71367003-fdae-49a4-bf01-cd686edc5e84-0
00:30:39.200 --> 00:30:43.217
Then the determination of a single multi
functional production process shall be

71367003-fdae-49a4-bf01-cd686edc5e84-1
00:30:43.217 --> 00:30:43.720
mandatory.

d9749860-14ef-49d8-b9b8-76edc7f022de-0
00:30:44.200 --> 00:30:49.680
So let's us start with the possibility
with the main part of the article.

f933a3a0-bf5b-4d11-9001-ce7e14c37f21-0
00:30:50.840 --> 00:30:52.680
So the operator can group the CN codes.

767f2a0e-90ac-48fb-8347-29ce4aafce6e-0
00:30:52.880 --> 00:30:54.120
This is not a requirement.

1195a9c3-ad53-481a-bd79-89ee54eb4100-0
00:30:54.760 --> 00:30:59.190
So the implementation of this article is
gives leeway to adapt to the reality of

1195a9c3-ad53-481a-bd79-89ee54eb4100-1
00:30:59.190 --> 00:31:00.120
the installation.

344e1d68-5213-47cd-97f3-976f930620fa-0
00:31:00.120 --> 00:31:03.760
But of course it requires a bit of help
for this interpretation.

b2ac1f7a-918e-47e2-aa2a-569176427dee-0
00:31:03.880 --> 00:31:05.480
So we provide some recommendations.

80bc5c99-d473-4646-87b2-d4594196eb5e-0
00:31:06.680 --> 00:31:08.720
You will also find it find it in the
guidance.

c8b2c52d-deeb-4819-9315-6e4d2a08e982-0
00:31:08.720 --> 00:31:11.160
So comment that we can already explain it
here.

7449863d-892c-4569-8c5f-b84e91926180-0
00:31:11.280 --> 00:31:15.664
And these recommendations are
particularly for iron and steel products,

7449863d-892c-4569-8c5f-b84e91926180-1
00:31:15.664 --> 00:31:19.440
which this where this rule it may be more
difficult to apply.

face1822-973e-4a9c-a45e-7e9beb33b40d-0
00:31:20.200 --> 00:31:22.760
So we recommend that there is a first
level of grouping.

1f036a46-b052-474a-ba45-65d6f3f501bf-0
00:31:22.920 --> 00:31:27.914
So the production processes of goods
whose CN codes share the same rates range

1f036a46-b052-474a-ba45-65d6f3f501bf-1
00:31:27.914 --> 00:31:30.760
in composition of federalize are grouped
OK.

c0705bb6-21bf-43bd-9f78-81dcf695ba5d-0
00:31:30.880 --> 00:31:34.223
So we always have to look to the CN code
because at the end this is,

c0705bb6-21bf-43bd-9f78-81dcf695ba5d-1
00:31:34.223 --> 00:31:35.920
this is what defines a product, OK.

86c8aada-3c73-46b6-bc68-f519ebf43950-0
00:31:36.120 --> 00:31:40.689
Every time that we a methodology speaks
about the type of precursor goods in

86c8aada-3c73-46b6-bc68-f519ebf43950-1
00:31:40.689 --> 00:31:43.360
general,
it's always talking about CN codes.

0bd79b23-2b23-4acb-8970-9017b54e9d56-0
00:31:44.160 --> 00:31:48.916
So the second level of grouping would be
CN codes that are made of the same

0bd79b23-2b23-4acb-8970-9017b54e9d56-1
00:31:48.916 --> 00:31:49.480
material.

cf6773a6-b08d-42aa-a9f1-bfedaad643c9-0
00:31:50.080 --> 00:31:53.440
They say no alloy steel,
stainless steel that those can be also

cf6773a6-b08d-42aa-a9f1-bfedaad643c9-1
00:31:53.440 --> 00:31:55.960
grouped and there is a third level of
grouping.

61777494-8876-4e3f-86ae-070be989af4a-0
00:31:56.240 --> 00:31:59.365
Remember that these are all
recommendations is because this is a

61777494-8876-4e3f-86ae-070be989af4a-1
00:31:59.365 --> 00:32:01.000
possibility of the operator to do.

735a1869-7b69-45e5-9743-4da7b3837a9e-0
00:32:01.000 --> 00:32:02.440
I mean this is not a requirement.

35a25e1f-ce3b-4cd7-99e3-0789f6ad4f8a-0
00:32:02.640 --> 00:32:07.323
And a third level of grouping that they
will be grouping production process do

35a25e1f-ce3b-4cd7-99e3-0789f6ad4f8a-1
00:32:07.323 --> 00:32:09.280
not have very relevant emissions.

f962dc59-478f-49c3-bf2f-d0139da16894-0
00:32:10.360 --> 00:32:14.976
So with examples because this again is a
bit difficult to explain and it's much

f962dc59-478f-49c3-bf2f-d0139da16894-1
00:32:14.976 --> 00:32:17.920
easier to understand with with something
tangible.

b7bc82a4-c6f0-4e90-ba56-12ecefbcca33-0
00:32:17.920 --> 00:32:22.016
I mean this is the typical issue when
writing methodologies that need to be

b7bc82a4-c6f0-4e90-ba56-12ecefbcca33-1
00:32:22.016 --> 00:32:24.280
adaptable and used in too many situations.

b64d1487-bd5c-416c-86bf-04900bb44227-0
00:32:24.280 --> 00:32:26.840
At the end you get the awarding that is
habit abstract.

13729273-be84-42ea-929a-7203b4bf5509-0
00:32:26.880 --> 00:32:28.520
So apply to our diagram.

5d6aec45-bf54-4cb0-af5e-e59f153baecb-0
00:32:28.720 --> 00:32:31.400
And this would mean that the first level
of grouping.

de0a1e3b-bc23-451b-a29e-34a2fa255600-0
00:32:31.560 --> 00:32:36.747
So remember the production processes of
goods whose CN Cos share the same range

de0a1e3b-bc23-451b-a29e-34a2fa255600-1
00:32:36.747 --> 00:32:37.720
in composition.

ababbc4b-922c-4143-8a66-d3dacacf5ee9-0
00:32:38.360 --> 00:32:42.381
This would mean that all CN Cos produce
in the installation that are hot rolled

ababbc4b-922c-4143-8a66-d3dacacf5ee9-1
00:32:42.381 --> 00:32:45.800
produce and have the same range of nickel
content could be grouped.

57e32912-480c-455f-be0c-e8d80918d591-0
00:32:46.240 --> 00:32:50.736
OK so then a production process 3 as you
see in the slide that will be hot rolling

57e32912-480c-455f-be0c-e8d80918d591-1
00:32:50.736 --> 00:32:54.800
will be a multi functional process
covering all the CN codes that you use.

8ea41563-7ad2-4037-a7ab-6ef1d98c38cf-0
00:32:55.240 --> 00:32:59.302
Then the second level which as you
remember is grouping CN codes made made

8ea41563-7ad2-4037-a7ab-6ef1d98c38cf-1
00:32:59.302 --> 00:33:00.440
of the same material.

0a2cef71-22ef-4d1c-9cd8-0ecfa0bbae89-0
00:33:01.040 --> 00:33:05.513
So grouping CN codes under for example
the 73 chapter made of a stainless steel

0a2cef71-22ef-4d1c-9cd8-0ecfa0bbae89-1
00:33:05.513 --> 00:33:06.240
in this part.

c0b34a78-8749-4a20-a3dd-7e048e21ec6a-0
00:33:06.840 --> 00:33:12.576
So this means that production process 7
would cover will be a multi functional

c0b34a78-8749-4a20-a3dd-7e048e21ec6a-1
00:33:12.576 --> 00:33:18.602
process covering all the CN codes at the
least that are within the 73 chapter that

c0b34a78-8749-4a20-a3dd-7e048e21ec6a-2
00:33:18.602 --> 00:33:20.200
are made of stainless.

f483a28b-5e09-426f-a7b5-33a8ee791d5c-0
00:33:21.440 --> 00:33:27.569
And then the third level with which we
say that this could be grouping processes

f483a28b-5e09-426f-a7b5-33a8ee791d5c-1
00:33:27.569 --> 00:33:29.840
with no significant emissions.

5f5e42e8-37ba-48bc-939d-3cbe6677ac38-0
00:33:30.160 --> 00:33:35.772
Basically this both mean in the example
that you would take the hot rolling

5f5e42e8-37ba-48bc-939d-3cbe6677ac38-1
00:33:35.772 --> 00:33:41.606
process and the finishing processes put
it together because they are using the

5f5e42e8-37ba-48bc-939d-3cbe6677ac38-2
00:33:41.606 --> 00:33:44.560
same precursor to produce their product.

960a295b-21e3-4920-a912-b711eb24f08f-0
00:33:45.280 --> 00:33:48.360
And then the roots of those two processes
will be also grouped, OK.

8da47d7a-302d-4899-8ee2-e7e95710f036-0
00:33:49.480 --> 00:33:53.937
And then it will be a big production
process five and seven together with all

8da47d7a-302d-4899-8ee2-e7e95710f036-1
00:33:53.937 --> 00:33:57.080
the same codes that you see in the in the
chapter, OK.

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-0
00:33:57.400 --> 00:34:02.234
You here see in the third level,
you here can see that this is a

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-1
00:34:02.234 --> 00:34:07.811
simplification really because the
emissions from hot rolling and finishing

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-2
00:34:07.811 --> 00:34:14.058
in this case for example coating or or or
similar processes would all be attributed

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-3
00:34:14.058 --> 00:34:20.082
equally to all products independently of
which of the both process are they have

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-4
00:34:20.082 --> 00:34:24.544
they have gone through again,
I mean it's not fully, fully,

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-5
00:34:24.544 --> 00:34:28.412
fully correct,
but sometimes the simplification for

c3b5fec0-fb94-4cf6-bc46-95035ca65a0d-6
00:34:28.412 --> 00:34:32.800
simplification you need to to sacrifice a
bit of accuracy.

b7e6418c-f31f-48bb-abba-26d8b3b3b321-0
00:34:33.480 --> 00:34:39.200
So this would be the case the case in
this particular situation of as I said,

b7e6418c-f31f-48bb-abba-26d8b3b3b321-1
00:34:39.200 --> 00:34:41.400
this is only a recommendation.

eb2280a0-0779-439f-8953-d88908a0913f-0
00:34:41.400 --> 00:34:47.051
So or they say give tools to give tools
to the operators to simplify as much as

eb2280a0-0779-439f-8953-d88908a0913f-1
00:34:47.051 --> 00:34:50.160
possible the monitoring within the
studies.

b6630021-4453-4c82-8853-75cae6d86cd2-0
00:34:50.800 --> 00:34:58.520
So we have seen now these ways to group
production process and to group CN codes.

4ed04fe5-f5c1-4031-a766-b594abb71d35-0
00:34:59.200 --> 00:35:03.788
But what we have found from the feedback
received and from the questions received

4ed04fe5-f5c1-4031-a766-b594abb71d35-1
00:35:03.788 --> 00:35:07.929
is actually that there is a lot of
interest on the other part of the this

4ed04fe5-f5c1-4031-a766-b594abb71d35-2
00:35:07.929 --> 00:35:10.280
article that is the mandatory requirement.

3ad51050-5de4-4100-b692-3fe1890cc258-0
00:35:10.960 --> 00:35:14.360
And in general there is an interest to
disaggregate as much as possible.

1b295c19-fff4-446b-940a-318052ffb5f7-0
00:35:14.360 --> 00:35:20.480
So probably all these recommendations may
not be used but OK, we provide them.

627b6219-5805-4d68-864f-8e2ec7085ea9-0
00:35:21.360 --> 00:35:24.640
So we are going now to see the rule of
the mandatory grouping.

e8f4e92b-1fd5-4cb8-8133-fc7288932462-0
00:35:25.080 --> 00:35:29.041
These rules says that for the goods and
the degraded goods category,

e8f4e92b-1fd5-4cb8-8133-fc7288932462-1
00:35:29.041 --> 00:35:33.520
crude steel I don't steel products and
growth aluminum and aluminum products.

150470ae-a32d-4cf6-b610-57daa31d8567-0
00:35:34.080 --> 00:35:38.647
Where different functional units only
differ in size or shape and are produced

150470ae-a32d-4cf6-b610-57daa31d8567-1
00:35:38.647 --> 00:35:41.712
with the same product,
the same precursors in types,

150470ae-a32d-4cf6-b610-57daa31d8567-2
00:35:41.712 --> 00:35:45.354
quantities and proportion,
a single multifunctional production

150470ae-a32d-4cf6-b610-57daa31d8567-3
00:35:45.354 --> 00:35:46.800
process shall be defined.

ec39ce48-c778-48ec-8259-d809a56177de-0
00:35:47.000 --> 00:35:49.907
For the aggregated goose category
fertilizers,

ec39ce48-c778-48ec-8259-d809a56177de-1
00:35:49.907 --> 00:35:54.546
where different functional units are
produced with the simple precursor in

ec39ce48-c778-48ec-8259-d809a56177de-2
00:35:54.546 --> 00:35:57.144
types,
quantities and proportions and are

ec39ce48-c778-48ec-8259-d809a56177de-3
00:35:57.144 --> 00:36:01.164
composed by the same substance and only
differ in concentration,

ec39ce48-c778-48ec-8259-d809a56177de-4
00:36:01.164 --> 00:36:05.679
then the same they shall be grouped in a
single multifunctional process.

d4839bff-7cec-4e0e-8701-a28ea263d589-0
00:36:06.960 --> 00:36:09.000
And you may think, I mean why this rule?

bc06d0d9-ab9f-487e-bb67-92b0c2b68cf3-0
00:36:09.000 --> 00:36:11.520
Why this mandatory rule here?

2951a980-92f8-41af-9f2d-b7f40e98be38-0
00:36:11.720 --> 00:36:16.144
The issue here is that we need,
we needed to to fix certain mismatch

2951a980-92f8-41af-9f2d-b7f40e98be38-1
00:36:16.144 --> 00:36:19.800
between the CN codes descriptors and the
C1 methodology.

06212615-7272-400e-b5ba-a68e9395ac60-0
00:36:20.240 --> 00:36:23.516
Since there are some goods within the CN
codes,

06212615-7272-400e-b5ba-a68e9395ac60-1
00:36:23.516 --> 00:36:26.520
I mean that only differ in the final
steps.

f54e0cc5-5754-42bb-85e8-f2e62a10c5cf-0
00:36:27.000 --> 00:36:31.610
In the case of metal metals finishing
processes which are out of the system

f54e0cc5-5754-42bb-85e8-f2e62a10c5cf-1
00:36:31.610 --> 00:36:36.100
under this and in the case of fertilizers,
there were differences just in

f54e0cc5-5754-42bb-85e8-f2e62a10c5cf-2
00:36:36.100 --> 00:36:39.680
concentration when when they are marketed
in in solutions.

242effdc-518d-40d1-856c-5f0a0e21a96b-0
00:36:41.240 --> 00:36:46.462
So This is why we needed to Polish,
let's say this descriptors in the CN

242effdc-518d-40d1-856c-5f0a0e21a96b-1
00:36:46.462 --> 00:36:52.184
codes that allowed the the definition of
production process in a way that there

242effdc-518d-40d1-856c-5f0a0e21a96b-2
00:36:52.184 --> 00:36:54.760
was not fit for purpose of of civil.

16aff687-9330-474f-bc80-f2b6514bf9b9-0
00:36:55.200 --> 00:36:58.393
So if we focus a bit more on this rule on
metas,

16aff687-9330-474f-bc80-f2b6514bf9b9-1
00:36:58.393 --> 00:37:03.542
because this may be the least clear,
I think that for fertilizer concentration

16aff687-9330-474f-bc80-f2b6514bf9b9-2
00:37:03.542 --> 00:37:08.625
of substances is I think it's clear the
rule for for fertilizers is something

16aff687-9330-474f-bc80-f2b6514bf9b9-3
00:37:08.625 --> 00:37:12.080
that at least we haven't received so many
questions.

19e6105e-3950-4009-8b07-3b0ac97e8a1d-0
00:37:12.080 --> 00:37:17.072
And one can see clearly when you see
different concentration and solutions in

19e6105e-3950-4009-8b07-3b0ac97e8a1d-1
00:37:17.072 --> 00:37:18.480
CN codes how to group.

0057c33d-1d3a-413c-9b0e-9f8a0fda8c3a-0
00:37:19.120 --> 00:37:24.037
But for metasys a bit difficult,
three questions basically to answer and

0057c33d-1d3a-413c-9b0e-9f8a0fda8c3a-1
00:37:24.037 --> 00:37:25.520
this needs to be done.

4aa677b0-f354-4fd6-b83b-6e87d9ac44f0-0
00:37:26.600 --> 00:37:29.698
So basically we do we have the first
question functional units that only

4aa677b0-f354-4fd6-b83b-6e87d9ac44f0-1
00:37:29.698 --> 00:37:30.760
differ in shape and size.

df489458-9b9c-4803-9767-0295ec205bbc-0
00:37:30.760 --> 00:37:35.148
So basically you take the CN code
description and see if the CN codes

df489458-9b9c-4803-9767-0295ec205bbc-1
00:37:35.148 --> 00:37:39.600
differ in shape or size are produced with
the same precursors in type.

129ef092-e8c0-4237-b755-3af4c49e858c-0
00:37:40.000 --> 00:37:42.648
Remember when we say type,
we say CN codes,

129ef092-e8c0-4237-b755-3af4c49e858c-1
00:37:42.648 --> 00:37:45.960
do they have the same precursors in terms
of CN codes?

b4d2d609-f63f-474f-85f7-0e1e90226d1b-0
00:37:46.520 --> 00:37:50.854
And then when we say same precursors in
quantities and proportion proportions

b4d2d609-f63f-474f-85f7-0e1e90226d1b-1
00:37:50.854 --> 00:37:55.355
basically is that the different CN codes
contain contain their precursors in the

b4d2d609-f63f-474f-85f7-0e1e90226d1b-2
00:37:55.355 --> 00:37:57.800
same ranges are defined in the same
ranges.

ce20f41d-3d9f-4aa5-b10b-18551a223e53-0
00:37:58.040 --> 00:38:03.206
So we have put here this as a bit of
applying these three criteria to two

ce20f41d-3d9f-4aa5-b10b-18551a223e53-1
00:38:03.206 --> 00:38:08.861
examples as you see a bit of a decision 3
in which we have to answer these three

ce20f41d-3d9f-4aa5-b10b-18551a223e53-2
00:38:08.861 --> 00:38:09.560
questions.

56ea5613-7f98-49ec-a45b-b7a199d6b590-0
00:38:09.560 --> 00:38:15.137
So in the first example,
we have two different CN codes right and

56ea5613-7f98-49ec-a45b-b7a199d6b590-1
00:38:15.137 --> 00:38:15.560
left.

73ad022a-d021-4bdd-8f92-fc8deb844fd2-0
00:38:15.600 --> 00:38:18.341
Sorry that they didn't put the CN code
number,

73ad022a-d021-4bdd-8f92-fc8deb844fd2-1
00:38:18.341 --> 00:38:22.600
but you believe me these are different
real cases of different CN codes.

d20aa607-d2f5-4b5f-934e-50bd78ba8c14-0
00:38:22.600 --> 00:38:29.605
So there are bars and roads above 8 with
a section about 80 millimetres with a

d20aa607-d2f5-4b5f-934e-50bd78ba8c14-1
00:38:29.605 --> 00:38:35.369
content of nickel above 2.
5 and this another CN code which only

d20aa607-d2f5-4b5f-934e-50bd78ba8c14-2
00:38:35.369 --> 00:38:39.360
differ in the section which is below
8080mm.

a4cfa0a0-e304-4181-a70c-0190b7a7c521-0
00:38:40.120 --> 00:38:44.480
So if you ask the questions only differ
in shape and size.

5aa2d999-bb49-494f-a4aa-f1196bdb618a-0
00:38:45.080 --> 00:38:49.040
Yes,
they have the same CN codes of recursors.

45ad9eba-26de-47f1-ac00-2e60e0551f1e-0
00:38:49.040 --> 00:38:51.549
Yes,
because at the end this ferronickel

45ad9eba-26de-47f1-ac00-2e60e0551f1e-1
00:38:51.549 --> 00:38:55.160
ferronickel same have the same quantities
and proportions.

6fb85f69-9f16-4916-a8ab-ede4577e4eaf-0
00:38:55.440 --> 00:38:58.873
Yes,
at least the CN codes are there as they

6fb85f69-9f16-4916-a8ab-ede4577e4eaf-1
00:38:58.873 --> 00:39:04.062
are described in the combined
nomenclature is the range is the same

6fb85f69-9f16-4916-a8ab-ede4577e4eaf-2
00:39:04.062 --> 00:39:05.360
above 2.5 nickel.

919242ae-f1d9-4290-a716-97e3b2ba6892-0
00:39:06.040 --> 00:39:08.680
So and this is what they they share.

bc1efb79-2231-468b-9fe0-f158348a9253-0
00:39:09.800 --> 00:39:13.600
It's just to all of the three questions
then they shall be grouped.

83c9f74e-8594-4025-aa0f-937ed8e1c74b-0
00:39:14.360 --> 00:39:19.360
The second example in this case it would
be a bit different.

5154ca46-4d52-4b43-9c36-0675c76b9283-0
00:39:19.440 --> 00:39:24.040
So we have a stainless steel wire
containing a very specific,

5154ca46-4d52-4b43-9c36-0675c76b9283-1
00:39:24.040 --> 00:39:27.898
I will not read,
but a very specific composition of

5154ca46-4d52-4b43-9c36-0675c76b9283-2
00:39:27.898 --> 00:39:29.159
chromium and Nic.

79bd8892-4374-4a7b-be0a-82b64d553a08-0
00:39:29.400 --> 00:39:34.302
And then we have another CN code,
which are stainless steel bars and roads

79bd8892-4374-4a7b-be0a-82b64d553a08-1
00:39:34.302 --> 00:39:37.440
with a composition of nickel that is
above 2.5.

5f188955-dacb-431d-ab10-0056a3a1040f-0
00:39:38.000 --> 00:39:42.231
But the installation operator knows that
this is exactly the same material

5f188955-dacb-431d-ab10-0056a3a1040f-1
00:39:42.231 --> 00:39:45.109
basically,
that actually these bars and roads have

5f188955-dacb-431d-ab10-0056a3a1040f-2
00:39:45.109 --> 00:39:49.003
exactly the same composition that the
wire they have is not, I mean,

5f188955-dacb-431d-ab10-0056a3a1040f-3
00:39:49.003 --> 00:39:52.840
there is not ACN code for for those bars
and roads for some reason.

7f751802-2e41-4655-8bf7-855947a5fd01-0
00:39:52.840 --> 00:39:55.600
This is why we are introducing these
rules, you know,

7f751802-2e41-4655-8bf7-855947a5fd01-1
00:39:55.600 --> 00:39:59.640
because there are some things in the CN
codes that do not fit completely well.

dfbf5426-c2a4-4235-83d0-0d0c14e6e0f6-0
00:40:00.480 --> 00:40:04.410
So in this case the installation
operators know that this is the same

dfbf5426-c2a4-4235-83d0-0d0c14e6e0f6-1
00:40:04.410 --> 00:40:07.049
material,
OK that contains this composition of

dfbf5426-c2a4-4235-83d0-0d0c14e6e0f6-2
00:40:07.049 --> 00:40:09.520
nickel and this composition of of
chromium.

36097d8b-e4ca-4106-8795-abd74e9f7e49-0
00:40:09.920 --> 00:40:16.424
So in that case only differ in shape and
size, yes, same CN codes of precursors,

36097d8b-e4ca-4106-8795-abd74e9f7e49-1
00:40:16.424 --> 00:40:20.118
yes,
same quantities and ranges of precursor,

36097d8b-e4ca-4106-8795-abd74e9f7e49-2
00:40:20.118 --> 00:40:20.440
yes.

0a01aeb4-78d4-49f4-8e63-ffeb5fda1afb-0
00:40:20.440 --> 00:40:21.520
So grouped.

3af83e02-8004-4ce6-90c6-ef991da77bfe-0
00:40:21.960 --> 00:40:27.197
And then the third one example has to
show some moment that you don't have to

3af83e02-8004-4ce6-90c6-ef991da77bfe-1
00:40:27.197 --> 00:40:27.600
group.

edca0153-ddcc-4ed8-9b88-45e1d9e485e3-0
00:40:28.560 --> 00:40:32.571
OK,
there is ACN code that is flat roll

edca0153-ddcc-4ed8-9b88-45e1d9e485e3-1
00:40:32.571 --> 00:40:35.680
produce in shape whatever a OK.

6d47d26a-afcb-45cb-8c7e-4b744bda1c8a-0
00:40:36.240 --> 00:40:41.358
You will find very specific shapes in in
the CN codes with content of 2.

6d47d26a-afcb-45cb-8c7e-4b744bda1c8a-1
00:40:41.358 --> 00:40:42.200
5 of nickel.

f8b9ac0a-d349-4b1f-ad4b-a2cd30e5df23-0
00:40:42.760 --> 00:40:46.560
But this content of nickel corresponds to
a very specific steel grade, OK.

c13a970f-a015-4ad1-89b2-dc64eb810276-0
00:40:47.160 --> 00:40:53.534
And then there is flat roll products with
another shape which is more than 25

c13a970f-a015-4ad1-89b2-dc64eb810276-1
00:40:53.534 --> 00:40:57.538
nickel,
but the installation operator knows that

c13a970f-a015-4ad1-89b2-dc64eb810276-2
00:40:57.538 --> 00:41:03.912
this product contain nickel in a range
for another still great different from

c13a970f-a015-4ad1-89b2-dc64eb810276-3
00:41:03.912 --> 00:41:08.652
shape A, so different in shapes,
in shapes and size, Yes,

c13a970f-a015-4ad1-89b2-dc64eb810276-4
00:41:08.652 --> 00:41:12.738
we say that same saying codes of
precursors, yes,

c13a970f-a015-4ad1-89b2-dc64eb810276-5
00:41:12.738 --> 00:41:15.680
because we are talking about nickel.

e8535dd5-9a47-4233-851b-b212a3ffbb54-0
00:41:16.080 --> 00:41:21.084
But do they have same quantities
proportions not because we are already

e8535dd5-9a47-4233-851b-b212a3ffbb54-1
00:41:21.084 --> 00:41:26.019
saying that the nickel contain,
I mean significantly different because

e8535dd5-9a47-4233-851b-b212a3ffbb54-2
00:41:26.019 --> 00:41:28.800
more than 2.5 nickel can be many things.

88066751-659f-4385-a836-51a3010f96ce-0
00:41:28.800 --> 00:41:29.680
No, in this case.

468bef0c-4d31-462b-81f4-ae66b5ace1c6-0
00:41:29.680 --> 00:41:32.480
But as you see, I mean with this example,
so sorry.

3116354d-1b26-4c40-aa69-595a4bb2ca27-0
00:41:32.480 --> 00:41:36.790
And they finished not grouping,
but they see as you see here in the

3116354d-1b26-4c40-aa69-595a4bb2ca27-1
00:41:36.790 --> 00:41:40.911
example is something is,
is a rule that needs to be applied case

3116354d-1b26-4c40-aa69-595a4bb2ca27-2
00:41:40.911 --> 00:41:43.320
by case in each installation operator.

3a1e5c1e-9d0b-4966-9008-00d087d5cd8a-0
00:41:43.920 --> 00:41:48.266
But this was quite important because it
is required to,

3a1e5c1e-9d0b-4966-9008-00d087d5cd8a-1
00:41:48.266 --> 00:41:51.760
to fix this mismatch in the in the CN
codes.

b690ce13-34ce-4154-9ed0-03fcfea6c4ec-0
00:41:51.760 --> 00:41:55.520
And we, we have received many,
many questions about it.

4817c760-93b1-4d71-93ac-38f971a2e334-0
00:41:55.880 --> 00:42:00.944
So this would be the last from my side
and I will give the floor to my colleague

4817c760-93b1-4d71-93ac-38f971a2e334-1
00:42:00.944 --> 00:42:01.320
Julie.

aa1716b7-edcc-4a74-bd86-46af5036263a-0
00:42:01.560 --> 00:42:02.040
Thank you.

7dbfbe75-7523-41a6-8888-5ed22b450dc7-0
00:42:02.480 --> 00:42:05.547
So I'm Julie,
I'm also working in the detected in the C

7dbfbe75-7523-41a6-8888-5ed22b450dc7-1
00:42:05.547 --> 00:42:06.040
BAM team.

74c3ea94-c058-4d1b-ae3f-8103c4c27cc8-0
00:42:06.040 --> 00:42:10.485
So now that we saw it was your first,
how functional units are to be defined

74c3ea94-c058-4d1b-ae3f-8103c4c27cc8-1
00:42:10.485 --> 00:42:11.640
for each C BAM good.

ab94a21d-5cdb-4a94-b918-9ecbe30064fe-0
00:42:11.640 --> 00:42:14.570
And then how production processes are to
be identified,

ab94a21d-5cdb-4a94-b918-9ecbe30064fe-1
00:42:14.570 --> 00:42:18.285
we can move to the next step,
identifying the system boundary for each

ab94a21d-5cdb-4a94-b918-9ecbe30064fe-2
00:42:18.285 --> 00:42:19.280
production process.

6aec0396-22d6-49aa-bd41-8b5dec62f2a2-0
00:42:19.920 --> 00:42:22.924
So the general rule is that for each
production process,

6aec0396-22d6-49aa-bd41-8b5dec62f2a2-1
00:42:22.924 --> 00:42:26.033
the system boundary has to cover one the
direct emissions,

6aec0396-22d6-49aa-bd41-8b5dec62f2a2-2
00:42:26.033 --> 00:42:28.880
then indirect emissions from electricity
consumption.

2a38c5e0-8f28-43c4-a6b7-f212eba5ee19-0
00:42:29.120 --> 00:42:32.615
This is only for goods not listed in an
X2 to C BAM regulation,

2a38c5e0-8f28-43c4-a6b7-f212eba5ee19-1
00:42:32.615 --> 00:42:34.800
but you'll be explaining all that later.

21a19c15-bf22-41d7-a3c0-597bf6f0c0de-0
00:42:35.480 --> 00:42:39.970
And these emissions are the ones emitted
by all processes directly or indirectly

21a19c15-bf22-41d7-a3c0-597bf6f0c0de-1
00:42:39.970 --> 00:42:41.800
linked to the production process.

25be782a-c10a-4dbd-9e63-171e7a37431c-0
00:42:41.840 --> 00:42:47.598
Third Point is embedded emissions of any
precursor that is used in the production

25be782a-c10a-4dbd-9e63-171e7a37431c-1
00:42:47.598 --> 00:42:48.160
process.

d52bc930-efa3-459c-946e-8ddd00ca9834-0
00:42:48.960 --> 00:42:54.023
So whether this precursor is produced on
the installation itself or acquired from

d52bc930-efa3-459c-946e-8ddd00ca9834-1
00:42:54.023 --> 00:42:55.320
another installation.

c1fe5121-1b31-4fc7-8ebf-c1953f1e3d75-0
00:42:55.760 --> 00:42:59.805
The definition of a system boundary in
the methodology regulation is a group of

c1fe5121-1b31-4fc7-8ebf-c1953f1e3d75-1
00:42:59.805 --> 00:43:03.901
chemical or physical processes included
in the calculation of embedded emissions

c1fe5121-1b31-4fc7-8ebf-c1953f1e3d75-2
00:43:03.901 --> 00:43:06.480
of goods under the same aggregated goods
category.

d9dd0806-cb2f-43c0-b11d-e247141d6b1f-0
00:43:06.800 --> 00:43:09.680
So you might wonder how do I know which
processes I include on it?

e523c0d7-5d35-4541-82a9-ca254640cd8d-0
00:43:10.040 --> 00:43:15.532
So This is why we have sector specific
rules that define which processes to be

e523c0d7-5d35-4541-82a9-ca254640cd8d-1
00:43:15.532 --> 00:43:18.800
included or not per aggregated goods
category.

25aae733-e079-49c5-9c37-bde100ddf24e-0
00:43:18.800 --> 00:43:23.091
As Rasio said before,
this is where they still enter into the

25aae733-e079-49c5-9c37-bde100ddf24e-1
00:43:23.091 --> 00:43:24.960
game of of the methodology.

bfb90e24-9687-4c42-b234-97fe38f69f8d-0
00:43:25.520 --> 00:43:29.975
So per aggregated goods category you have
which processes to include,

bfb90e24-9687-4c42-b234-97fe38f69f8d-1
00:43:29.975 --> 00:43:35.258
which to exclude and also sometimes were
relevant with distinctions per production

bfb90e24-9687-4c42-b234-97fe38f69f8d-2
00:43:35.258 --> 00:43:35.640
route.

6aed3de7-514e-4b4d-8b93-fb03f305cc78-0
00:43:36.240 --> 00:43:40.709
And then it's the operator's task to
identify the specific processes to

6aed3de7-514e-4b4d-8b93-fb03f305cc78-1
00:43:40.709 --> 00:43:44.000
include in the system boundary based on
these rules.

aac68034-0ed0-47e6-803d-0a314c4ca53e-0
00:43:44.240 --> 00:43:48.947
So some in the sector specific rules,
there has been some changes that we want

aac68034-0ed0-47e6-803d-0a314c4ca53e-1
00:43:48.947 --> 00:43:49.960
to underline now.

be9f4fca-8e6b-475d-869c-2c3cd958ceea-0
00:43:49.960 --> 00:43:53.812
So for iron as three products,
the system boundary now explicitly

be9f4fca-8e6b-475d-869c-2c3cd958ceea-1
00:43:53.812 --> 00:43:58.308
includes reheating, re melting, casting,
hot rolling, cold rolling, forging,

be9f4fca-8e6b-475d-869c-2c3cd958ceea-2
00:43:58.308 --> 00:44:01.810
annealing, coating, galvanizing,
wire drawing and pickling,

be9f4fca-8e6b-475d-869c-2c3cd958ceea-3
00:44:01.810 --> 00:44:04.379
and specifically excludes plating,
cutting,

be9f4fca-8e6b-475d-869c-2c3cd958ceea-4
00:44:04.379 --> 00:44:07.239
welding and finishing of iron or steel
products.

62745b97-814a-4cd3-8692-594d93e7a02f-0
00:44:07.680 --> 00:44:11.916
Similarly now for aluminium products,
it explicitly excludes cutting,

62745b97-814a-4cd3-8692-594d93e7a02f-1
00:44:11.916 --> 00:44:14.640
welding and finishing of aluminium
products.

33a7d493-1064-492e-bbf4-a0e72949a725-0
00:44:15.280 --> 00:44:19.798
Another big change is that so you might
remember that in the transitional

33a7d493-1064-492e-bbf4-a0e72949a725-1
00:44:19.798 --> 00:44:23.584
methodology you had a list of relevant
precursors per sector,

33a7d493-1064-492e-bbf4-a0e72949a725-2
00:44:23.584 --> 00:44:25.600
so per aggregated goods category.

f8a73b83-968c-4511-84a2-dd853380f9bb-0
00:44:25.600 --> 00:44:29.930
This is not the case anymore because now
a precursor can be any sebum good that is

f8a73b83-968c-4511-84a2-dd853380f9bb-1
00:44:29.930 --> 00:44:32.800
used as an input material into the
production process.

2b99c495-c6e6-47b7-a980-342cf2252ea1-0
00:44:33.120 --> 00:44:37.268
So this is actually the operator's task
to identify which input materials are

2b99c495-c6e6-47b7-a980-342cf2252ea1-1
00:44:37.268 --> 00:44:38.120
also precursors.

96176684-5130-4f42-b2aa-fe47350eb9a3-0
00:44:38.240 --> 00:44:42.145
Also excluded now are the purchase and
maintenance of infrastructure and

96176684-5130-4f42-b2aa-fe47350eb9a3-1
00:44:42.145 --> 00:44:42.680
equipment.

6a2d1ed1-91ef-484e-a80c-1961bd7f04c8-0
00:44:42.760 --> 00:44:47.051
To go up in more detail, for instance,
would be blasting and painting considered

6a2d1ed1-91ef-484e-a80c-1961bd7f04c8-1
00:44:47.051 --> 00:44:50.760
as part of finishing and therefore
excluded for iron or two products?

601c40b4-1e80-41a9-98ca-d58f1b83b0be-0
00:44:50.760 --> 00:44:54.845
What we consider as finishing is all
processes with minor emissions,

601c40b4-1e80-41a9-98ca-d58f1b83b0be-1
00:44:54.845 --> 00:44:56.800
so negligible energy consumption.

6787dc95-4e3e-4eab-b466-61f9fe494582-0
00:44:57.200 --> 00:44:59.629
Blasting and painting can be considered
as such,

6787dc95-4e3e-4eab-b466-61f9fe494582-1
00:44:59.629 --> 00:45:03.200
so as finishing processes and that's
excluded from the system boundary.

bc5de24f-8515-4a48-8852-8052dfffec34-0
00:45:03.800 --> 00:45:07.711
Another question we received a lot is
whether galvanizing out of is out of the

bc5de24f-8515-4a48-8852-8052dfffec34-1
00:45:07.711 --> 00:45:10.880
system boundary when it is carried out in
another installation.

dbcc8a81-d054-40ff-b0a3-3fa287109c77-0
00:45:11.280 --> 00:45:13.318
So you might remember from the site
before,

dbcc8a81-d054-40ff-b0a3-3fa287109c77-1
00:45:13.318 --> 00:45:16.840
but galvanizing is explicitly mentioned
as included in the system boundary.

41c87b5c-7ca3-4355-a9b9-e2dcbfdf013c-0
00:45:17.240 --> 00:45:21.999
So emissions have to be accounted for
whether it occurs in the installation or

41c87b5c-7ca3-4355-a9b9-e2dcbfdf013c-1
00:45:21.999 --> 00:45:22.240
not.

c325dfb5-562e-4235-be2c-1fde8c048fc1-0
00:45:22.360 --> 00:45:26.069
You have to include them and then you can
also decide whether it is in the same

c325dfb5-562e-4235-be2c-1fde8c048fc1-1
00:45:26.069 --> 00:45:29.639
production process or if you add an
production process specifically for that

c325dfb5-562e-4235-be2c-1fde8c048fc1-2
00:45:29.639 --> 00:45:30.520
other installation.

244ca347-2f90-4f53-8799-74b83515cf78-0
00:45:30.680 --> 00:45:33.000
And then I'll give the floor to Michelle.

bd2262a0-8cc3-44cf-b051-b3767851a309-0
00:45:33.760 --> 00:45:34.680
Thank you very much.

72851a6f-5309-449a-8609-a45b675b237f-0
00:45:34.840 --> 00:45:38.240
So I will try not to be too mysterious,
but I see time is moving on.

5dff7010-fed3-4591-b1dd-ca805fb78b82-0
00:45:38.240 --> 00:45:42.563
So to be fast and hopefully still very
clear on indirect emissions,

5dff7010-fed3-4591-b1dd-ca805fb78b82-1
00:45:42.563 --> 00:45:45.360
just to give you an overview,
first of all,

5dff7010-fed3-4591-b1dd-ca805fb78b82-2
00:45:45.360 --> 00:45:50.255
on some general changes that we have
between the transitional period and the

5dff7010-fed3-4591-b1dd-ca805fb78b82-3
00:45:50.255 --> 00:45:51.400
definitive period.

e36338cf-6648-4058-8700-3333843f3f8b-0
00:45:51.520 --> 00:45:54.059
Of course,
what we're looking at here in the

e36338cf-6648-4058-8700-3333843f3f8b-1
00:45:54.059 --> 00:45:57.896
definition is we're looking at the
emissions from the production of

e36338cf-6648-4058-8700-3333843f3f8b-2
00:45:57.896 --> 00:46:01.960
electricity which is consumed during the
production processes of goods.

643f8b5e-65cc-4ca7-a844-7b7ab0874969-0
00:46:03.320 --> 00:46:05.800
So that remains the same between the two
periods.

d0343d75-2d36-422b-86e1-f007c60d3041-0
00:46:06.280 --> 00:46:09.901
But in terms of the scope,
in the transitional period,

d0343d75-2d36-422b-86e1-f007c60d3041-1
00:46:09.901 --> 00:46:14.049
you needed to report indirect commissions
for all C Bam goods,

d0343d75-2d36-422b-86e1-f007c60d3041-2
00:46:14.049 --> 00:46:19.185
and that is different now because they
are only reported for C bam goods that

d0343d75-2d36-422b-86e1-f007c60d3041-3
00:46:19.185 --> 00:46:22.280
are not listed in NX2 of the C Bam
regulation.

eaa05596-d186-41c4-b95d-0ebccf7766ad-0
00:46:22.280 --> 00:46:25.377
And that is of course, cement,
fertilizers,

eaa05596-d186-41c4-b95d-0ebccf7766ad-1
00:46:25.377 --> 00:46:27.560
but also agglomerated iron ore.

4b64a80a-5fb9-4052-82eb-cef4f9848b6e-0
00:46:27.680 --> 00:46:30.716
Now when we look at the aggregation of
indirect emissions,

4b64a80a-5fb9-4052-82eb-cef4f9848b6e-1
00:46:30.716 --> 00:46:34.628
so this is the case when you have
multiple sources of indirect emissions or

4b64a80a-5fb9-4052-82eb-cef4f9848b6e-2
00:46:34.628 --> 00:46:35.400
of electricity.

7295dbb0-6597-4c3a-918f-5d211d2c94cb-0
00:46:36.080 --> 00:46:39.095
In the transitional period,
there was nothing specific on this,

7295dbb0-6597-4c3a-918f-5d211d2c94cb-1
00:46:39.095 --> 00:46:40.320
but now in the definitive.

ba5bd956-34a8-4819-9d76-d5671fa697a9-0
00:46:40.320 --> 00:46:41.280
We have to find it.

81aa4f5a-74f0-455d-869e-d3011c4f3dd4-0
00:46:41.280 --> 00:46:47.031
So if you have a production installation
that receives electricity from multiple

81aa4f5a-74f0-455d-869e-d3011c4f3dd4-1
00:46:47.031 --> 00:46:47.600
sources.

9cb2b8f4-41af-4fe0-9fd7-cde6e92fab3e-0
00:46:47.760 --> 00:46:51.024
So for instance,
imagine you have some electricity that

9cb2b8f4-41af-4fe0-9fd7-cde6e92fab3e-1
00:46:51.024 --> 00:46:54.288
comes from the grid,
some comes from a power purchasing

9cb2b8f4-41af-4fe0-9fd7-cde6e92fab3e-2
00:46:54.288 --> 00:46:55.280
agreement to PPA.

abd467b8-7da7-45a2-8302-19ca56145f0d-0
00:46:55.840 --> 00:47:01.418
Then you have to get them together using
a weighted average of the emission

abd467b8-7da7-45a2-8302-19ca56145f0d-1
00:47:01.418 --> 00:47:03.400
factors of all the sources.

63178ecb-3048-453c-a7c8-7bc5cae96f86-0
00:47:03.400 --> 00:47:07.159
So you take, for instance,
the emission factor from the grid and

63178ecb-3048-453c-a7c8-7bc5cae96f86-1
00:47:07.159 --> 00:47:09.877
then how much you have consumed from the
grid,

63178ecb-3048-453c-a7c8-7bc5cae96f86-2
00:47:09.877 --> 00:47:14.503
then the emission factor for the PPA and
how much you have consumed through the

63178ecb-3048-453c-a7c8-7bc5cae96f86-3
00:47:14.503 --> 00:47:17.106
PPA,
and then you take a weighted average to

63178ecb-3048-453c-a7c8-7bc5cae96f86-4
00:47:17.106 --> 00:47:17.799
add the map.

96c2b05b-0ead-4fbb-8402-616775a5bfa7-0
00:47:18.320 --> 00:47:24.122
Now the last general change is about the
evidence that you need to provide when it

96c2b05b-0ead-4fbb-8402-616775a5bfa7-1
00:47:24.122 --> 00:47:26.360
comes to using actual emissions.

e7df2321-5afd-4410-8b48-5d5a59b69ed2-0
00:47:26.360 --> 00:47:28.680
So not default values,
but actual emissions.

82dd5c41-0a68-4eb0-a26a-81250de53a17-0
00:47:29.200 --> 00:47:32.880
We had some general indications before,
but now in the definitive.

061c4a54-79c7-4aa5-b18c-a83f8d51eef5-0
00:47:33.120 --> 00:47:37.611
We have really clear evidence
requirements and we'll go into more

061c4a54-79c7-4aa5-b18c-a83f8d51eef5-1
00:47:37.611 --> 00:47:42.919
detail on those to justify the use of
actual data when you calculate indirect

061c4a54-79c7-4aa5-b18c-a83f8d51eef5-2
00:47:42.919 --> 00:47:43.600
emissions.

3be6ded1-0223-4296-ac13-15bd192ac240-0
00:47:43.680 --> 00:47:48.362
And the emission factor of electricity
may then be based on actual data if

3be6ded1-0223-4296-ac13-15bd192ac240-1
00:47:48.362 --> 00:47:53.044
either a direct connection to the
installation is enforced and that can be

3be6ded1-0223-4296-ac13-15bd192ac240-2
00:47:53.044 --> 00:47:57.788
demonstrated or a PPAA power purchase
agreement is enforced and that can be

3be6ded1-0223-4296-ac13-15bd192ac240-3
00:47:57.788 --> 00:47:58.600
demonstrated.

95c16434-18bf-4b34-8347-c8374ffc537f-0
00:47:59.320 --> 00:48:04.490
So looking at the next slide,
we can then take a closer look at these

95c16434-18bf-4b34-8347-c8374ffc537f-1
00:48:04.490 --> 00:48:10.326
conditions that have now been clearly
defined and actual emissions may be used

95c16434-18bf-4b34-8347-c8374ffc537f-2
00:48:10.326 --> 00:48:15.349
actually here in the case of a,
a direct technical link that can be

95c16434-18bf-4b34-8347-c8374ffc537f-3
00:48:15.349 --> 00:48:18.600
demonstrated or a power purchase
agreement.

add13159-5e5c-4a3a-a8cf-b4a5e6aec0c5-0
00:48:18.600 --> 00:48:19.920
So the famous PPA.

0632704b-0949-4bcb-bba4-c6de3ef2b0c4-0
00:48:20.160 --> 00:48:23.560
Now what do we have to show with these
elements of evidence?

225e17d2-784b-4770-916c-56f1a4b18669-0
00:48:23.560 --> 00:48:28.040
Actually what we have to cover is a that
this direct technical link,

225e17d2-784b-4770-916c-56f1a4b18669-1
00:48:28.040 --> 00:48:32.520
direct technical link or the PPA exists,
but also that's being used.

aab3cc29-fee8-4c78-9566-593012ee7b31-0
00:48:32.760 --> 00:48:35.320
So these are really the two things that
we have to to show.

16f4c846-bd36-4942-8171-5f61bf8b022f-0
00:48:35.480 --> 00:48:40.160
Just to be clear that only physical Ppas
are eligible here.

f2c0f1af-29c6-492e-b18a-209efffa2d12-0
00:48:40.160 --> 00:48:42.401
So Ppas,
it's only the physical ones that are

f2c0f1af-29c6-492e-b18a-209efffa2d12-1
00:48:42.401 --> 00:48:42.840
eligible.

309f8d95-0012-4169-906e-cac38495b6eb-0
00:48:43.000 --> 00:48:45.690
Now,
what specific elements of evidence for

309f8d95-0012-4169-906e-cac38495b6eb-1
00:48:45.690 --> 00:48:47.280
the direct technical link?

f9ae9040-5c92-4493-a1cf-13f37081834a-0
00:48:47.360 --> 00:48:51.535
First of all,
it's a single line diagram that proves

f9ae9040-5c92-4493-a1cf-13f37081834a-1
00:48:51.535 --> 00:48:55.160
the existence of this link for private
grids.

511bf2a9-48ee-4f83-93d2-dd757e93bf64-0
00:48:55.160 --> 00:49:00.775
We also look at a contract between the
two installations for the delivery of at

511bf2a9-48ee-4f83-93d2-dd757e93bf64-1
00:49:00.775 --> 00:49:06.320
least the quantity of electricity that
you are reporting actual emissions for.

8240e867-4948-4a70-9c01-809c63558901-0
00:49:06.880 --> 00:49:09.840
Now for Ppas,
we would start with a contract.

6b215bfe-0a3d-46ea-804e-5c9cf9f7b838-0
00:49:10.040 --> 00:49:15.202
So contractual evidence that demonstrates
that there is actually the PPA between

6b215bfe-0a3d-46ea-804e-5c9cf9f7b838-1
00:49:15.202 --> 00:49:19.535
the producer of the good that is
reporting actual emissions and the

6b215bfe-0a3d-46ea-804e-5c9cf9f7b838-2
00:49:19.535 --> 00:49:21.320
producer of the electricity.

3a299ed1-e1f5-4af2-a918-9bed5162cdfb-0
00:49:21.360 --> 00:49:23.440
Now there's one particular case here.

6facd208-9a35-42e4-96ad-aeb865e5ceb2-0
00:49:23.520 --> 00:49:26.867
If in this contract,
you don't just have to the producer and

6facd208-9a35-42e4-96ad-aeb865e5ceb2-1
00:49:26.867 --> 00:49:30.600
the consumer of the electricity,
but you also have an intermediary.

2eaf7963-465f-43b8-848e-ab8f684ea50c-0
00:49:31.160 --> 00:49:36.031
What is important is that your
contractual evidence demonstrates that

2eaf7963-465f-43b8-848e-ab8f684ea50c-1
00:49:36.031 --> 00:49:41.320
only one single contract was concluded
between those 3 contracting parties.

e7ed1411-3674-4efb-a839-2daace497884-0
00:49:41.320 --> 00:49:45.106
So if you have an intermediary,
show that there's only one contract

e7ed1411-3674-4efb-a839-2daace497884-1
00:49:45.106 --> 00:49:48.280
between the producer,
the consumer and the intermediary.

1f9fe5aa-447c-4dc0-83a0-90c0b0a3149c-0
00:49:48.840 --> 00:49:52.618
And the second thing is some written
documentation from the TSO,

1f9fe5aa-447c-4dc0-83a0-90c0b0a3149c-1
00:49:52.618 --> 00:49:57.094
the transformation system operator or
other relevant public authorities that

1f9fe5aa-447c-4dc0-83a0-90c0b0a3149c-2
00:49:57.094 --> 00:50:00.698
also prove the existence,
again with physical grid connection

1f9fe5aa-447c-4dc0-83a0-90c0b0a3149c-3
00:50:00.698 --> 00:50:05.116
between the two installations where the
electricity produce is produced and

1f9fe5aa-447c-4dc0-83a0-90c0b0a3149c-4
00:50:05.116 --> 00:50:05.640
consumed.

9727803d-1880-4051-b373-d73a25120096-0
00:50:05.960 --> 00:50:11.761
And to finish off on on these conditions,
there are some common elements as well

9727803d-1880-4051-b373-d73a25120096-1
00:50:11.761 --> 00:50:15.200
for both the PPA and the direct technical
link.

10923298-3437-44dd-b909-92068831ee6f-0
00:50:15.360 --> 00:50:19.056
And that is that smart metering data
prove that a certain quantity of

10923298-3437-44dd-b909-92068831ee6f-1
00:50:19.056 --> 00:50:21.960
electricity was actually produced during
a given time.

cf8d26f3-aae4-4f3c-9956-fcbfb783939b-0
00:50:22.680 --> 00:50:28.902
And then also data that shows that an
equivalent amount of electricity was

cf8d26f3-aae4-4f3c-9956-fcbfb783939b-1
00:50:28.902 --> 00:50:34.960
delivered to the plant that produces the
C bam good during a given time.

08e240f3-568c-4a89-849f-f5f80d41f21b-0
00:50:35.680 --> 00:50:39.240
And this should be within one hour of the
production.

65335ad7-55e8-4e29-9fbd-aeb3dc0d07f2-0
00:50:39.520 --> 00:50:44.520
So it's really to match the production
and the consumption of the electricity.

1780e6be-9585-4b52-978b-a8530481146c-0
00:50:44.640 --> 00:50:49.287
Now having looked at all these things
that are bit across the different sectors,

1780e6be-9585-4b52-978b-a8530481146c-1
00:50:49.287 --> 00:50:54.106
we can move on to the next slide where we
have some sector specific changes that we

1780e6be-9585-4b52-978b-a8530481146c-2
00:50:54.106 --> 00:50:57.320
see from the transitional period to the
definitive one.

93470408-7a96-45b5-bd35-b15f6a59f7d3-0
00:50:57.320 --> 00:51:01.434
When we look at the sector of iron and
steel precursors here,

93470408-7a96-45b5-bd35-b15f6a59f7d3-1
00:51:01.434 --> 00:51:06.279
we had in the transitional periods the
rule that indirect emissions were

93470408-7a96-45b5-bd35-b15f6a59f7d3-2
00:51:06.279 --> 00:51:09.200
included for all C bum relevant
precursors.

de4798bd-fe80-4681-b33d-0c6e3dbcf26a-0
00:51:09.280 --> 00:51:14.125
Whereas in the definite period now we
have aggregated iron ores not being

de4798bd-fe80-4681-b33d-0c6e3dbcf26a-1
00:51:14.125 --> 00:51:17.400
excluded from the indirect emissions
requirement.

a3bf7c10-8dea-4468-9940-db81868d99a6-0
00:51:18.400 --> 00:51:22.240
So the indirect emissions for this must
still be included for iron and steel

a3bf7c10-8dea-4468-9940-db81868d99a6-1
00:51:22.240 --> 00:51:24.634
goods,
even though steel itself has no indirect

a3bf7c10-8dea-4468-9940-db81868d99a6-2
00:51:24.634 --> 00:51:26.280
emissions listed in the next two.

38b26b87-2caa-4e69-8114-afd4a5739ecc-0
00:51:26.840 --> 00:51:27.840
So steel is out.

7456cebb-7b4a-448c-b776-f66ff007a106-0
00:51:28.200 --> 00:51:30.905
But if a precursor here is aggregated
iron ores,

7456cebb-7b4a-448c-b776-f66ff007a106-1
00:51:30.905 --> 00:51:35.600
the indirect emissions for the aggregated
iron ores they are in need to be reported.

16da12fc-1e9b-4f84-a741-14a62c59202d-0
00:51:36.000 --> 00:51:39.382
Now in terms of extrusion of indirect
emissions,

16da12fc-1e9b-4f84-a741-14a62c59202d-1
00:51:39.382 --> 00:51:43.938
when we look at hydrogen and ammonia,
in the transitional period,

16da12fc-1e9b-4f84-a741-14a62c59202d-2
00:51:43.938 --> 00:51:48.839
indirect emissions were included again
for all C1 relevant precursors.

49dd831f-8ebf-4421-b33c-9256d51aca4d-0
00:51:49.160 --> 00:51:54.969
But in the definite period now we don't
need to report indirect emissions for

49dd831f-8ebf-4421-b33c-9256d51aca4d-1
00:51:54.969 --> 00:51:55.640
hydrogen.

0616c1bf-89b5-46c8-9cb9-854a67a26d0e-0
00:51:56.240 --> 00:51:59.880
And this applies also where hydrogen is a
precursor to ammonia.

95cf5fc1-365d-4522-8b00-29f498025092-0
00:52:00.120 --> 00:52:06.640
So that's very important even though for
ammonia indirect emissions are required.

4a2180c3-4998-45a8-9cbb-08339ceb5202-0
00:52:06.800 --> 00:52:09.040
So that's mainly it.

2bbf6e02-2263-4bb3-9c0c-2ab33f4f6390-0
00:52:09.200 --> 00:52:13.484
If you look at the bottom of the slides,
you still have a, yeah,

2bbf6e02-2263-4bb3-9c0c-2ab33f4f6390-1
00:52:13.484 --> 00:52:18.427
a bit of a decision tree or or a flow
where you would ask are in emissions

2bbf6e02-2263-4bb3-9c0c-2ab33f4f6390-2
00:52:18.427 --> 00:52:19.679
generally in scope.

92da0496-839c-42bd-9ac1-666f9b55626d-0
00:52:20.520 --> 00:52:23.120
Then you look at the electricity sources.

31b7dd83-535d-458a-8f3c-dadcf6c6f79d-0
00:52:23.640 --> 00:52:26.495
If you have,
especially if you have multiple sources,

31b7dd83-535d-458a-8f3c-dadcf6c6f79d-1
00:52:26.495 --> 00:52:29.931
you would look at the weighted average of
emission factors here,

31b7dd83-535d-458a-8f3c-dadcf6c6f79d-2
00:52:29.931 --> 00:52:34.267
but you could also have a single source
or a subset only and then need sufficient

31b7dd83-535d-458a-8f3c-dadcf6c6f79d-3
00:52:34.267 --> 00:52:37.440
dividends of course for this and use that
in the reporting.

19c3fcde-8227-4745-9245-a924b6760ead-0
00:52:38.200 --> 00:52:39.920
So that was it on the Internet emissions.

47d10d6f-fc26-47b9-8386-49eec3e93810-0
00:52:39.920 --> 00:52:42.240
And with that, I won't turn over again.

369512f0-ceda-4977-ad32-bb6594a6c4ab-0
00:52:42.880 --> 00:52:43.280
Thank you.

49c7fbca-58c4-47b3-afac-532abac66f18-0
00:52:43.280 --> 00:52:46.765
So now that we saw direct emissions,
indirect emissions,

49c7fbca-58c4-47b3-afac-532abac66f18-1
00:52:46.765 --> 00:52:49.640
we have also embedded emissions of
precursors.

9360a083-d4da-4aef-999c-d0961082416d-0
00:52:49.640 --> 00:52:53.055
So main changes,
the first one is already said that we

9360a083-d4da-4aef-999c-d0961082416d-1
00:52:53.055 --> 00:52:56.160
don't have a list of relevant precursors
anymore.

a29dce3f-4a55-4c39-8272-000b3e2e9bc4-0
00:52:56.240 --> 00:52:58.200
Any CBM good can be a precursor.

86a49cde-3afa-46e6-9ab8-d15a1fff6306-0
00:52:58.200 --> 00:53:03.757
Then regarding your reporting periods,
so the defaults for precursor is that it

86a49cde-3afa-46e6-9ab8-d15a1fff6306-1
00:53:03.757 --> 00:53:07.440
would be the year of production of the
complex good.

17652388-6eda-4a52-ae3b-5d5527ddf90a-0
00:53:07.440 --> 00:53:12.534
This is also for simplification purposes,
unless the operator provides evidence on

17652388-6eda-4a52-ae3b-5d5527ddf90a-1
00:53:12.534 --> 00:53:17.506
the actual production year that can then
be used for the reporting period of the

17652388-6eda-4a52-ae3b-5d5527ddf90a-2
00:53:17.506 --> 00:53:18.120
precursor.

e044d8c0-a818-4f7d-8aaf-9cb854a1218e-0
00:53:18.640 --> 00:53:21.440
So you need to determine this for obvious
reason.

563d9713-dd87-4f0d-ae95-bce060441a02-0
00:53:21.440 --> 00:53:23.630
For instance,
if you want to use country specific

563d9713-dd87-4f0d-ae95-bce060441a02-1
00:53:23.630 --> 00:53:26.040
default values,
you need a year of the default values.

2af895e2-3068-42de-99d3-f97b66b2fca9-0
00:53:26.600 --> 00:53:31.416
So then there's also specific rules
regarding precursors under the same same

2af895e2-3068-42de-99d3-f97b66b2fca9-1
00:53:31.416 --> 00:53:33.480
code used within an installation.

672a594b-d3c7-408e-b9f7-86ae6c35b5e5-0
00:53:33.480 --> 00:53:38.182
So if you receive precursors from
different reporting periods that are

672a594b-d3c7-408e-b9f7-86ae6c35b5e5-1
00:53:38.182 --> 00:53:43.283
still all the same the same CN code,
then you have to use a weighted average

672a594b-d3c7-408e-b9f7-86ae6c35b5e5-2
00:53:43.283 --> 00:53:47.920
of embedded emission of this precursor
request all reporting periods.

41f01cb9-8364-4efc-81b9-af4c4da2387f-0
00:53:48.840 --> 00:53:52.482
Then another case is when you have the
same same code,

41f01cb9-8364-4efc-81b9-af4c4da2387f-1
00:53:52.482 --> 00:53:56.720
same precursor but coming from different
suppliers, same again.

b6857aab-7d79-4b14-83fb-accf820920ea-0
00:53:56.720 --> 00:54:01.160
Here the default rule is to use the
weighted average across all suppliers.

58a5ccbd-d7aa-40fd-bf18-df3a113b880d-0
00:54:01.520 --> 00:54:03.480
And here we have again an exemption rule.

bef54aef-55f3-4bee-a8cd-355ddc576c88-0
00:54:03.480 --> 00:54:09.724
So if the operator can show that there's
only precursors coming from one supplier

bef54aef-55f3-4bee-a8cd-355ddc576c88-1
00:54:09.724 --> 00:54:14.598
or subset of suppliers,
and these were used only for a specific

bef54aef-55f3-4bee-a8cd-355ddc576c88-2
00:54:14.598 --> 00:54:19.320
production process in the installation,
then you can use the.

b31e511d-312b-45ed-9130-a6006cefe3ff-0
00:54:19.480 --> 00:54:24.293
I mean if it's only 1 installation
directly the embedded emission of those

b31e511d-312b-45ed-9130-a6006cefe3ff-1
00:54:24.293 --> 00:54:25.000
precursors.

ff3dcb0e-ffd2-46c0-9a35-2ec5cbd696e3-0
00:54:25.000 --> 00:54:29.751
But if it's a subset,
then the weighted average from the subset

ff3dcb0e-ffd2-46c0-9a35-2ec5cbd696e3-1
00:54:29.751 --> 00:54:35.840
of installation or the the this specific
production process a bit confused maybe.

43d03e56-2a82-4159-a868-50307bf0168c-0
00:54:35.840 --> 00:54:38.160
So we'll show with an example on the next
slides.

dc7fecd6-669f-4f01-aea4-8e431ccae87f-0
00:54:39.800 --> 00:54:45.759
So here we have an electric arc furnace
producing both alloy steel in production

dc7fecd6-669f-4f01-aea4-8e431ccae87f-1
00:54:45.759 --> 00:54:49.879
process A and stainless steel and
production process B,

dc7fecd6-669f-4f01-aea4-8e431ccae87f-2
00:54:49.879 --> 00:54:55.544
and both are using ferronickel amongst
other precursors from three different

dc7fecd6-669f-4f01-aea4-8e431ccae87f-3
00:54:55.544 --> 00:54:56.280
suppliers.

b82e38d5-9f28-43dc-8bc0-9dd9224d927a-0
00:54:56.880 --> 00:54:58.480
So we have two options.

39376b86-bdfc-4017-91c5-59c4412ad2da-0
00:54:58.480 --> 00:54:59.640
We could even have more.

bb656ae6-35e1-4ff1-b796-fdad04abf16e-0
00:54:59.920 --> 00:55:02.755
The default rule,
as I explained just before,

bb656ae6-35e1-4ff1-b796-fdad04abf16e-1
00:55:02.755 --> 00:55:07.626
would be to use the weighted average of
embedded emissions across supplies 1-2

bb656ae6-35e1-4ff1-b796-fdad04abf16e-2
00:55:07.626 --> 00:55:11.880
and three for ferronickel,
so for both production processes A&amp;B.

d0b45a52-8304-4c06-8160-5cbc83ef696e-0
00:55:11.920 --> 00:55:16.104
And then we could imagine a case where
there's enough evidence to show that

d0b45a52-8304-4c06-8160-5cbc83ef696e-1
00:55:16.104 --> 00:55:20.400
ferronickel from supplier 1 is used
exclusively for the production process A.

a76c3450-d5ed-4d33-9795-3e7dc4b22dc3-0
00:55:20.840 --> 00:55:25.057
And then we can use embedded emissions
from supplier one for process A and by

a76c3450-d5ed-4d33-9795-3e7dc4b22dc3-1
00:55:25.057 --> 00:55:29.167
deduction you can use them the the
weighted average of emitted emissions of

a76c3450-d5ed-4d33-9795-3e7dc4b22dc3-2
00:55:29.167 --> 00:55:32.520
Veronickel across supplier 2 and 3 for
production process BI.

9feed21e-fbd9-4c6c-b80b-d8b009ac0b0c-0
00:55:33.400 --> 00:55:34.840
Hope this clarifies a bit.

cde8ad65-7cda-47b7-91c3-f18f91baec64-0
00:55:34.960 --> 00:55:37.880
We also have other changes regarding
precursors.

1f9c48fa-f48d-4c21-a211-f5c4e97617ae-0
00:55:37.880 --> 00:55:43.062
So first all precursors that are produced
in the EU are in exempted territories and

1f9c48fa-f48d-4c21-a211-f5c4e97617ae-1
00:55:43.062 --> 00:55:43.680
countries.

448c15d7-3fa9-41ba-8a0b-fb08a3144f04-0
00:55:43.680 --> 00:55:48.539
Those that are listed in Annex 3 to the C
RAM regulation shall have the so zero

448c15d7-3fa9-41ba-8a0b-fb08a3144f04-1
00:55:48.539 --> 00:55:50.240
specific embedded emissions.

54a80829-beb0-438c-b11f-03616449ded3-0
00:55:50.520 --> 00:55:55.048
Just also to note on this rule that even
though you use those precursors,

54a80829-beb0-438c-b11f-03616449ded3-1
00:55:55.048 --> 00:55:58.720
you'll still need to provide evidence
regarding its origin.

7f24ea32-b859-4096-be82-4088e3ebd5ba-0
00:55:59.120 --> 00:56:02.452
It have to be verified as part of the
verification of the installation

7f24ea32-b859-4096-be82-4088e3ebd5ba-1
00:56:02.452 --> 00:56:03.720
producing the complex good.

7aad796a-4ff8-42a8-8034-c94e5cd967a1-0
00:56:03.720 --> 00:56:07.120
Then another new rule is that you can
combine default and actual values.

73d3878b-9fe8-47c8-849e-2dec546d125e-0
00:56:07.120 --> 00:56:10.980
So when actual values are used for the
embedded emissions of a complex good,

73d3878b-9fe8-47c8-849e-2dec546d125e-1
00:56:10.980 --> 00:56:14.440
default values can be used for embedded
emissions of its precursors.

55d538f4-bdb3-4308-af02-5ad43a6406d1-0
00:56:14.480 --> 00:56:18.320
And similarly here the origin of
precursors will have to be verified to

55d538f4-bdb3-4308-af02-5ad43a6406d1-1
00:56:18.320 --> 00:56:20.240
use country specific default values.

11044b6b-e2e2-4bbd-a409-28de294e05c1-0
00:56:20.720 --> 00:56:26.172
So as part of the verification again of
the installation producing the complex

11044b6b-e2e2-4bbd-a409-28de294e05c1-1
00:56:26.172 --> 00:56:31.280
goods which uses this precursor and then
I hand over back to Rasio Julie.

6df0de54-1d15-40d8-87b9-a08ddf7dd84c-0
00:56:32.320 --> 00:56:33.480
OK, I will be quick.

58290f09-aa46-40d7-af0d-1f00894e9656-0
00:56:34.320 --> 00:56:40.154
So because also I mean this is not so
difficult to explain compared to the

58290f09-aa46-40d7-af0d-1f00894e9656-1
00:56:40.154 --> 00:56:44.044
other,
the other topics we have now in the slide,

58290f09-aa46-40d7-af0d-1f00894e9656-2
00:56:44.044 --> 00:56:45.600
the monitoring plan.

9e80caa7-7764-42a9-9413-4117b60c3be9-0
00:56:45.600 --> 00:56:48.840
This is also a new element of the
definitive.

d46b7496-59d2-425b-a56c-356ca8006772-0
00:56:49.840 --> 00:56:54.287
As you may remember,
in the transitional period there was only

d46b7496-59d2-425b-a56c-356ca8006772-1
00:56:54.287 --> 00:56:59.582
recommendation to have monitoring
documentation and this was together with

d46b7496-59d2-425b-a56c-356ca8006772-2
00:56:59.582 --> 00:57:04.806
the voluntary communication template that
was provided to support the the

d46b7496-59d2-425b-a56c-356ca8006772-3
00:57:04.806 --> 00:57:08.406
calculation of embedded emissions where
the tools,

d46b7496-59d2-425b-a56c-356ca8006772-4
00:57:08.406 --> 00:57:13.560
the tools that were provided by the
Commission for the learning process.

00d4f2e6-3e3c-49e1-a5d6-851754668e01-0
00:57:14.440 --> 00:57:18.958
During this transitional, of course,
there was no verification,

00d4f2e6-3e3c-49e1-a5d6-851754668e01-1
00:57:18.958 --> 00:57:22.560
so it made sense not to have any formal
reporting.

ac346374-70ea-49f2-8435-55c1e77c7fc6-0
00:57:23.080 --> 00:57:24.560
But now in the definitive.

9f099cc3-c0e2-42be-a5cb-c694c979c821-0
00:57:24.560 --> 00:57:27.920
The verification is required for the use
of actual data.

458ae3e8-4b40-4921-861c-9229dbc9e220-0
00:57:29.480 --> 00:57:34.179
So then the monitoring plan becomes
really relevant to to reasons first,

458ae3e8-4b40-4921-861c-9229dbc9e220-1
00:57:34.179 --> 00:57:39.264
because there is a need to translate the
methodology as you see could be a bit

458ae3e8-4b40-4921-861c-9229dbc9e220-2
00:57:39.264 --> 00:57:43.320
general and abstract to the reality of
each each installation.

93a2e95b-c0c5-4407-b665-413570858716-0
00:57:43.400 --> 00:57:47.988
This is one of the objectives of the of
the monitoring plan and it's also the

93a2e95b-c0c5-4407-b665-413570858716-1
00:57:47.988 --> 00:57:52.400
bridge between the annual reporting,
the calculation and the verification.

8884d17d-e886-4546-82e4-2c824d7aee69-0
00:57:52.400 --> 00:57:57.082
Since the monitoring plans will help the
verifier also to prepare their site

8884d17d-e886-4546-82e4-2c824d7aee69-1
00:57:57.082 --> 00:58:02.068
visits and and to to understand what are
the specificities of of the installation

8884d17d-e886-4546-82e4-2c824d7aee69-2
00:58:02.068 --> 00:58:02.920
to be audited.

c0f88794-5445-470b-bccb-3f3e0eff86ea-0
00:58:03.120 --> 00:58:07.555
This is like that means it's showing the
minimum content of the monitoring plan,

c0f88794-5445-470b-bccb-3f3e0eff86ea-1
00:58:07.555 --> 00:58:11.991
but it seem more mostly in response to
many questions that we have received from

c0f88794-5445-470b-bccb-3f3e0eff86ea-2
00:58:11.991 --> 00:58:15.605
the registered participants,
whether we will provide a monitoring

c0f88794-5445-470b-bccb-3f3e0eff86ea-3
00:58:15.605 --> 00:58:16.920
plant template etcetera.

28a1aa31-34e2-4289-9c7f-bb14dc3e72e6-0
00:58:17.280 --> 00:58:20.855
I mean, as you can see,
there are different sections in the

28a1aa31-34e2-4289-9c7f-bb14dc3e72e6-1
00:58:20.855 --> 00:58:24.430
monitoring plant about the installation
and goods produced,

28a1aa31-34e2-4289-9c7f-bb14dc3e72e6-2
00:58:24.430 --> 00:58:28.363
the monitoring methodology,
the precursors, heat and electricity,

28a1aa31-34e2-4289-9c7f-bb14dc3e72e6-3
00:58:28.363 --> 00:58:31.759
waste glasses control system and to
ensure data quality.

34803ef3-6363-4f0d-a06d-1dd291e69885-0
00:58:31.760 --> 00:58:38.200
There are 22 items and some of these
items, like the number 22, have two items.

a7a4d5d9-6f5e-4d59-b4e0-b5a642b3e528-0
00:58:38.720 --> 00:58:43.016
So the message that I want to transmit
here is that the minimum content is

a7a4d5d9-6f5e-4d59-b4e0-b5a642b3e528-1
00:58:43.016 --> 00:58:47.542
sufficiently specific and ample to cover
all the different situations that the

a7a4d5d9-6f5e-4d59-b4e0-b5a642b3e528-2
00:58:47.542 --> 00:58:49.720
operator may have in the installation.

7d295774-9392-43b0-8653-180ccbd31abe-0
00:58:50.160 --> 00:58:53.657
So from our point of view,
there is no need to provide any template

7d295774-9392-43b0-8653-180ccbd31abe-1
00:58:53.657 --> 00:58:57.257
for the operator to understand what
elements are to be covered in the

7d295774-9392-43b0-8653-180ccbd31abe-2
00:58:57.257 --> 00:58:58.080
monitoring plan.

3d3e2c5f-3a68-48f7-b3d5-e41e778d174a-0
00:58:58.880 --> 00:59:02.770
And also to, to,
to remind the the the audience that the,

3d3e2c5f-3a68-48f7-b3d5-e41e778d174a-1
00:59:02.770 --> 00:59:07.600
the template of the monitoring plan in
the UETS has different purposes.

a820c86f-dc0d-41c8-bbf0-5a2a6ff17ae7-0
00:59:07.840 --> 00:59:11.275
For example, is,
is is used for issuing permit permits by

a820c86f-dc0d-41c8-bbf0-5a2a6ff17ae7-1
00:59:11.275 --> 00:59:15.244
the national authorities,
which is something that is not needed in

a820c86f-dc0d-41c8-bbf0-5a2a6ff17ae7-2
00:59:15.244 --> 00:59:15.600
Syria.

8d8d5c5b-abc5-483a-aad8-0a4ca7a934e8-0
00:59:15.880 --> 00:59:21.209
Then the other element that we have
introduced that is derives from from the

8d8d5c5b-abc5-483a-aad8-0a4ca7a934e8-1
00:59:21.209 --> 00:59:23.840
monitoring plan is the mission report.

39c19e7e-4be3-4158-912d-0b84983b54e8-0
00:59:25.240 --> 00:59:29.120
I said there was not a formal reporting
in the transitional period.

b97ddff1-32aa-4ac9-a8d8-a2a6427e0295-0
00:59:29.120 --> 00:59:34.327
So it was just this communication
template template that also covered the

b97ddff1-32aa-4ac9-a8d8-a2a6427e0295-1
00:59:34.327 --> 00:59:38.480
summarized information that was needed
for the declarants.

1f3984df-465b-4bd5-8dfb-2750998b4f68-0
00:59:38.600 --> 00:59:39.880
Now in the definitive.

a3532dc1-dbc0-492d-9a55-125d55d90a8f-0
00:59:39.880 --> 00:59:42.880
The mission report becomes a key element
for verification.

30e2db9f-d5f5-44a5-ade2-4004147cc381-0
00:59:43.040 --> 00:59:46.918
Basically it is the document that will
reflect the results of the monitoring and

30e2db9f-d5f5-44a5-ade2-4004147cc381-1
00:59:46.918 --> 00:59:49.600
calculations and it will be subject to to
verification.

cb91b192-8d1c-483b-921f-5bff246a16c5-0
00:59:50.120 --> 00:59:54.040
And there is two types of three types of
reports.

4cb9ec9c-c620-4a26-b512-af9e8adf3b86-0
00:59:54.080 --> 00:59:58.303
You have the full emission report,
which is basically what is going to be

4cb9ec9c-c620-4a26-b512-af9e8adf3b86-1
00:59:58.303 --> 01:00:01.213
verified,
what is it covers all the results of the

4cb9ec9c-c620-4a26-b512-af9e8adf3b86-2
01:00:01.213 --> 01:00:03.039
monitoring plan and calculation.

19f119ac-d986-407a-aaeb-44924e20aa12-0
01:00:03.360 --> 01:00:05.320
So it's actually very, very comprehensive.

51a5707e-ccfb-4c02-b20b-a03a33913118-0
01:00:05.440 --> 01:00:08.480
You will have seen it in the methodology
implementing regulation.

a9804947-0311-42b2-b832-90d15e59b2aa-0
01:00:09.000 --> 01:00:13.191
Then there is the summary emission report
for installation operators registered in

a9804947-0311-42b2-b832-90d15e59b2aa-1
01:00:13.191 --> 01:00:14.000
the CM registry.

0c4785e1-c287-4f44-aab2-e9a25108f466-0
01:00:14.760 --> 01:00:19.176
That would be available to uses of of the
goods authorized C band declarants and

0c4785e1-c287-4f44-aab2-e9a25108f466-1
01:00:19.176 --> 01:00:22.120
what relevant operators using the goods
as percutors.

0ae9576e-6338-406d-8410-2e0d809ef6f5-0
01:00:22.120 --> 01:00:27.688
And then there is a declarant specific
addendum for electricity when actual

0ae9576e-6338-406d-8410-2e0d809ef6f5-1
01:00:27.688 --> 01:00:29.080
emissions are used.

1b260a5f-a775-4466-a9a9-040e8a4ec6e9-0
01:00:29.320 --> 01:00:32.407
And this will be the last slide of the
presentation,

1b260a5f-a775-4466-a9a9-040e8a4ec6e9-1
01:00:32.407 --> 01:00:35.320
and I'll pass it through to my colleague,
Sophia.

87c3ba26-3f3c-4573-9791-86e2dbf9677a-0
01:00:35.720 --> 01:00:38.126
Well,
thank you so much to all my colleagues

87c3ba26-3f3c-4573-9791-86e2dbf9677a-1
01:00:38.126 --> 01:00:40.480
who gave this very exhaustive
presentation.

4a540a6f-1b93-4e67-bb3f-828ecaa8c1e0-0
01:00:40.480 --> 01:00:43.474
We,
we know the methodology is very complex,

4a540a6f-1b93-4e67-bb3f-828ecaa8c1e0-1
01:00:43.474 --> 01:00:47.800
so we really hope that it helped to
better understand the topic.

7d777998-6d1f-47bb-9ad8-6b970f6a02d6-0
01:00:48.360 --> 01:00:52.714
We also hope that you still have a bit of
energy to bear with us so that we can

7d777998-6d1f-47bb-9ad8-6b970f6a02d6-1
01:00:52.714 --> 01:00:55.000
move to the questions and answers section.

fee3d299-b4e7-4af4-b83f-938942711e9f-0
01:00:55.760 --> 01:01:00.033
As mentioned at the beginning,
we have tried to identify the most common

fee3d299-b4e7-4af4-b83f-938942711e9f-1
01:01:00.033 --> 01:01:02.960
and relevant topics in the scope of this
webinar.

11ea7729-c317-490b-a8da-5992107f1938-0
01:01:02.960 --> 01:01:04.979
Actually,
the vast majority of them had already

11ea7729-c317-490b-a8da-5992107f1938-1
01:01:04.979 --> 01:01:07.840
been used to target about the
presentation that you have just seen.

6b65c494-2d90-4242-81d8-c986a4d1ba4d-0
01:01:08.120 --> 01:01:11.906
But we thought it'd be useful to just
directly mention some,

6b65c494-2d90-4242-81d8-c986a4d1ba4d-1
01:01:11.906 --> 01:01:16.933
some aspects that would deserve a last
word at the end of the presentation So we

6b65c494-2d90-4242-81d8-c986a4d1ba4d-2
01:01:16.933 --> 01:01:18.920
can move to the first questions.

7d4734de-a7dd-46bf-8330-5ec41cf28186-0
01:01:18.920 --> 01:01:25.880
And I will turn back to our first speaker,
Ivana for the first question that we have.

3f2de1e3-b925-404c-af86-3df153a8e87f-0
01:01:25.880 --> 01:01:30.952
So how should we calculate embedded
emissions if we purchased a part of the

3f2de1e3-b925-404c-af86-3df153a8e87f-1
01:01:30.952 --> 01:01:36.292
material from a supplier who provided
emission data, but they are not verified,

3f2de1e3-b925-404c-af86-3df153a8e87f-2
01:01:36.292 --> 01:01:37.360
can we use them?

4878343d-5594-41a7-8f03-0dbf2c407f33-0
01:01:37.680 --> 01:01:38.360
Thank you, Sophie.

d2e17bc8-9e89-45f1-9632-c4648d745a6e-0
01:01:38.360 --> 01:01:40.360
This is a very relevant question.

320e26d2-5572-46c2-997d-d66a10f05ad1-0
01:01:40.360 --> 01:01:45.141
After verification and actual data in
precursors and what I said in the

320e26d2-5572-46c2-997d-d66a10f05ad1-1
01:01:45.141 --> 01:01:48.461
beginning,
the mapping of your supplier chain and

320e26d2-5572-46c2-997d-d66a10f05ad1-2
01:01:48.461 --> 01:01:53.840
active communication with your suppliers
if they are suppliers of C bam goods is

320e26d2-5572-46c2-997d-d66a10f05ad1-3
01:01:53.840 --> 01:01:57.359
essential and we really encourage you to
to do that.

0ee9db7f-2287-4c6c-a08a-e4a9faba6cd0-0
01:01:57.400 --> 01:02:02.767
In that particular example is that it
seems that there are actual emission data

0ee9db7f-2287-4c6c-a08a-e4a9faba6cd0-1
01:02:02.767 --> 01:02:03.640
not verified.

c981c5d7-40cb-43b1-aade-2a27b2c35169-0
01:02:03.640 --> 01:02:08.361
There is a small step or maybe big one to
have a verification report,

c981c5d7-40cb-43b1-aade-2a27b2c35169-1
01:02:08.361 --> 01:02:10.520
but it would be really worth it.

282906cf-6897-4df6-8e93-465746dce9c9-0
01:02:10.880 --> 01:02:11.480
Why so?

29139e16-1153-4edb-9492-c08013e8446a-0
01:02:11.480 --> 01:02:14.072
Because in the absence of verification
report,

29139e16-1153-4edb-9492-c08013e8446a-1
01:02:14.072 --> 01:02:16.720
unfortunately the default value should be
used.

0f454e2f-c694-4ded-909e-27d61754481a-0
01:02:17.320 --> 01:02:20.550
However,
if you know and you can demonstrate,

0f454e2f-c694-4ded-909e-27d61754481a-1
01:02:20.550 --> 01:02:25.536
as Judy said, the country where,
where the precursors or was produced,

0f454e2f-c694-4ded-909e-27d61754481a-2
01:02:25.536 --> 01:02:29.890
who your supplier is,
then you can use the default values for

0f454e2f-c694-4ded-909e-27d61754481a-3
01:02:29.890 --> 01:02:35.720
that specific country and they appear in
NX1TO implementing act on default values.

d86864a9-e045-4413-bc28-add75bb275d8-0
01:02:36.240 --> 01:02:40.165
If unfortunately the origin of the
precursor is not known,

d86864a9-e045-4413-bc28-add75bb275d8-1
01:02:40.165 --> 01:02:43.360
then you need to use the default values
in NX4.

cf57d8c1-02c3-4763-b5b3-393d56b4a261-0
01:02:43.440 --> 01:02:45.917
And I'm more punitive,
so I hope that it's quite,

cf57d8c1-02c3-4763-b5b3-393d56b4a261-1
01:02:45.917 --> 01:02:46.760
quite exhaustive.

9c3fefec-37c0-40be-abce-88fd3232362f-0
01:02:46.920 --> 01:02:50.600
Plus in the part of the question,
it says part of the material.

c28a6864-3a30-4076-aa99-ee3319d2e1be-0
01:02:50.760 --> 01:02:55.240
So please don't forget to consider the
calculation of weighted average as well.

783111ab-a686-4508-992a-ac05e2c5206d-0
01:02:55.320 --> 01:03:00.905
And especially if that supplier is really
supplier offer let's say CO2 intensive

783111ab-a686-4508-992a-ac05e2c5206d-1
01:03:00.905 --> 01:03:04.146
good,
the more more incentive for you it is to

783111ab-a686-4508-992a-ac05e2c5206d-2
01:03:04.146 --> 01:03:09.249
approach and start negotiating for
arrangement of the of the verification

783111ab-a686-4508-992a-ac05e2c5206d-3
01:03:09.249 --> 01:03:10.560
report already now.

1a1ab255-b2ea-4b95-9241-689013c91004-0
01:03:11.000 --> 01:03:11.440
Thank you.

8ea9fab9-6d08-4ee8-bd92-e7665b29b009-0
01:03:11.840 --> 01:03:13.360
Thank you so much, Ivana.

1832f172-6eb8-400b-bff0-c325c11e39fe-0
01:03:13.560 --> 01:03:17.240
And I would have another question to ask
you.

f01b3699-ea3c-4ae9-a02a-16ff0535bc72-0
01:03:17.320 --> 01:03:22.549
Is it possible to have to share verify
the missions with importers while keeping

f01b3699-ea3c-4ae9-a02a-16ff0535bc72-1
01:03:22.549 --> 01:03:25.520
the producers identification as trade
secret?

3a5e686b-443a-4415-a429-5481d2360498-0
01:03:26.040 --> 01:03:27.640
Interesting question, Sophie.

3c66b399-999d-4822-b77f-5042c36af4a3-0
01:03:27.880 --> 01:03:32.424
I think that we get we get a lot because
submission data and they are quite it's

3c66b399-999d-4822-b77f-5042c36af4a3-1
01:03:32.424 --> 01:03:36.631
quite sensitive and they are really
considered sometimes trade secret like

3c66b399-999d-4822-b77f-5042c36af4a3-2
01:03:36.631 --> 01:03:41.120
there's a noun completely new currency
this carbon accounting that is emerging.

af5bf6a6-14fb-4b90-a426-110e8152fa82-0
01:03:41.560 --> 01:03:43.560
So yeah, that's relevant question.

e75fc835-a77c-4a11-ae63-c19d8c74b9b7-0
01:03:43.960 --> 01:03:47.911
And the C BAM registry,
as I mentioned in the beginning,

e75fc835-a77c-4a11-ae63-c19d8c74b9b7-1
01:03:47.911 --> 01:03:53.109
does have a functionality that the
operators can share the derivation data

e75fc835-a77c-4a11-ae63-c19d8c74b9b7-2
01:03:53.109 --> 01:03:55.120
only with selected importers.

84e83fa1-1934-45d1-8d93-15c76c9b13a3-0
01:03:55.720 --> 01:03:58.967
However,
when they share this data automatically,

84e83fa1-1934-45d1-8d93-15c76c9b13a3-1
01:03:58.967 --> 01:04:04.099
there is a NUM name of the operator,
the installation identification to really

84e83fa1-1934-45d1-8d93-15c76c9b13a3-2
01:04:04.099 --> 01:04:09.231
enable the proof that the the emissions
are real and actually very incurred in

84e83fa1-1934-45d1-8d93-15c76c9b13a3-3
01:04:09.231 --> 01:04:10.919
that in that installation.

8f9422a0-b928-43cb-a741-74a8c469654e-0
01:04:11.160 --> 01:04:16.460
So it is not impossible to,
to completely let's say hide the the

8f9422a0-b928-43cb-a741-74a8c469654e-1
01:04:16.460 --> 01:04:19.560
identity of of a supplier or producer.

f967718c-666d-4768-9bde-0c6b072311da-0
01:04:19.880 --> 01:04:21.120
Hope that answers the question.

a78e886a-3832-4a63-9546-8235ab3ee480-0
01:04:21.120 --> 01:04:21.520
Thank you.

08ae9594-5239-4ebf-86a7-6454e2f79a2b-0
01:04:21.760 --> 01:04:22.680
It definitely does.

24d0307c-0a54-4648-9119-f8f634949ef0-0
01:04:22.680 --> 01:04:26.840
Thank you so much Ivana and thank you so
much for having been with us today.

d15d6ba2-2285-4601-9161-28846e15332b-0
01:04:26.960 --> 01:04:30.680
And we can move to the next question
going back to Rocio actually.

0e982c61-bf20-4059-8276-8135d369af89-0
01:04:31.120 --> 01:04:36.477
So does EU ETS exemption for an EU based
installation also apply to such an

0e982c61-bf20-4059-8276-8135d369af89-1
01:04:36.477 --> 01:04:38.240
installation under SIBAM?

841ee9b9-8bff-4fa7-92a5-fe27bf65ce77-0
01:04:38.800 --> 01:04:42.280
In particular,
is the exception in the ETS of

841ee9b9-8bff-4fa7-92a5-fe27bf65ce77-1
01:04:42.280 --> 01:04:48.560
installations whose total rated thermal
input is below 20 MW also valid for C bam?

d1076a36-80b2-402c-870d-e0c26acd82ee-0
01:04:48.920 --> 01:04:55.451
This is actually a question that we think
is is very important and worth to explain

d1076a36-80b2-402c-870d-e0c26acd82ee-1
01:04:55.451 --> 01:04:55.840
well.

10c10071-88ce-423d-80fe-3a268ef5d01d-0
01:04:56.400 --> 01:05:02.986
The the issue with C BAM and UETS is that
SIBAM is product based instrument while

10c10071-88ce-423d-80fe-3a268ef5d01d-1
01:05:02.986 --> 01:05:06.520
the UETS is based at at installation
level.

4b62879b-bbcb-4568-b358-39e4a72edb29-0
01:05:07.000 --> 01:05:12.386
So the alignment of both methodologies in
terms of system boundaries is quite

4b62879b-bbcb-4568-b358-39e4a72edb29-1
01:05:12.386 --> 01:05:17.910
challenging since this threshold of 20
megabytes that applies to UETS cannot be

4b62879b-bbcb-4568-b358-39e4a72edb29-2
01:05:17.910 --> 01:05:21.640
evaluated exante for the purpose of Siban
compliance.

62440f62-bc2f-47d5-b9de-261da00e6d6b-0
01:05:22.440 --> 01:05:25.840
CRM applies to products, some processes,
not to installations.

97623eba-3a33-49c7-b4f6-2354d8076751-0
01:05:25.840 --> 01:05:29.600
And so we have to define the methodology
based on products and processes.

1f206b1f-4d74-4201-977a-5d26ca92feff-0
01:05:29.600 --> 01:05:34.280
I mean as I have explained,
but we have tried to minimize this case.

2044ae18-8374-4606-98e1-310b0061ec2c-0
01:05:34.400 --> 01:05:39.393
So we have selected the processes in the
in the system boundaries of ideal and

2044ae18-8374-4606-98e1-310b0061ec2c-1
01:05:39.393 --> 01:05:44.640
steel products because this is an issue
from the from the sector based on festive.

d4540760-da3e-4b01-83c8-52081ebb2e91-0
01:05:44.640 --> 01:05:50.461
The process is covered by activities
under the UTHETS subject to to phase out

d4540760-da3e-4b01-83c8-52081ebb2e91-1
01:05:50.461 --> 01:05:51.880
of free allocation.

2a06e43e-8688-40de-8a82-cb6628b07521-0
01:05:52.080 --> 01:05:54.950
In this criteria,
we have taken into account that there is

2a06e43e-8688-40de-8a82-cb6628b07521-1
01:05:54.950 --> 01:05:58.600
an activity in the UEDS that is
production or processing of ferrous metal,

2a06e43e-8688-40de-8a82-cb6628b07521-2
01:05:58.600 --> 01:06:01.811
which includes these processes,
not that you may have seen in the

2a06e43e-8688-40de-8a82-cb6628b07521-3
01:06:01.811 --> 01:06:03.320
methodology already or similar.

bb991db7-a5ae-4190-a306-26a663979eb0-0
01:06:03.320 --> 01:06:06.448
No,
this processing includes rolling mills,

bb991db7-a5ae-4190-a306-26a663979eb0-1
01:06:06.448 --> 01:06:11.000
reheaters, annealing, Smithers, foundries,
coating and picking.

849cfc18-b527-4757-8068-2300a73b54c0-0
01:06:12.000 --> 01:06:17.866
So this was one of the criteria whether
the process could be let's say within

849cfc18-b527-4757-8068-2300a73b54c0-1
01:06:17.866 --> 01:06:18.920
this activity.

8e651688-4305-45df-853b-a9ee22b2a2f3-0
01:06:19.400 --> 01:06:23.200
And then within those processes we chose
from the transitional methodology.

f3cbc26e-9d6b-4adc-881d-b4b3b2cbb3dd-0
01:06:23.400 --> 01:06:26.980
You remember there was a list of
processes for iron and steel products and

f3cbc26e-9d6b-4adc-881d-b4b3b2cbb3dd-1
01:06:26.980 --> 01:06:27.840
aluminum products.

08cb4573-3f51-4289-9a56-2f3ce376e892-0
01:06:28.320 --> 01:06:32.891
So we assess this list of processes
taking into account whether they were

08cb4573-3f51-4289-9a56-2f3ce376e892-1
01:06:32.891 --> 01:06:36.722
very energy consuming,
if they were using fuels and therefore

08cb4573-3f51-4289-9a56-2f3ce376e892-2
01:06:36.722 --> 01:06:40.120
they have in some significant direct
direct emissions.

281d1fac-7fbe-4aa4-baab-0cc3668f784f-0
01:06:40.200 --> 01:06:44.357
Based on these two criteria,
we selected the system boundaries in a

281d1fac-7fbe-4aa4-baab-0cc3668f784f-1
01:06:44.357 --> 01:06:47.720
way that, OK,
it may happen that a small installations

281d1fac-7fbe-4aa4-baab-0cc3668f784f-2
01:06:47.720 --> 01:06:52.000
may be still that would not be in the UTS
are still covered by C Bam.

750fff9c-b152-460f-995a-32dbb107fcf4-0
01:06:52.040 --> 01:06:53.240
Yes, this is a possibility.

2daba8b8-142c-45e3-a341-87570679f220-0
01:06:53.240 --> 01:06:55.400
But we think that we have minimized this
a lot.

ef20f8d0-281d-486b-b411-32bff6689eff-0
01:06:55.880 --> 01:07:00.066
And also we also aware that the
verification will have a materiality

ef20f8d0-281d-486b-b411-32bff6689eff-1
01:07:00.066 --> 01:07:04.920
level that the verifier will take into
account in case that these processes are

ef20f8d0-281d-486b-b411-32bff6689eff-2
01:07:04.920 --> 01:07:09.774
not so significant in terms of embedded
emissions compared to other to the rest

ef20f8d0-281d-486b-b411-32bff6689eff-3
01:07:09.774 --> 01:07:12.080
of processes in the system boundaries.

1518871d-d4c4-44b6-b1b9-8fa07f30b8c1-0
01:07:12.760 --> 01:07:12.920
Great.

86ede0f5-1977-4320-9a7d-046addbf8c8a-0
01:07:12.920 --> 01:07:14.400
Thank you so much for the seal.

633e1784-b35b-4abf-b1b2-fd146c4f6fd9-0
01:07:14.400 --> 01:07:19.320
And I'm now going to turn back to Julie
for a question to her.

37a9909c-e469-49e6-90a5-88e1d27bb379-0
01:07:19.880 --> 01:07:24.752
Is it possible to calculate the specific
embedded emissions just for you

37a9909c-e469-49e6-90a5-88e1d27bb379-1
01:07:24.752 --> 01:07:29.624
production lot by production route by
precursors used instead of using a

37a9909c-e469-49e6-90a5-88e1d27bb379-2
01:07:29.624 --> 01:07:31.560
weighted average per CN code?

f987ee33-cef7-487a-9f51-00168604b885-0
01:07:32.160 --> 01:07:32.960
Thank you, Sophia.

77873d52-cc26-4b27-a23b-bd9036a5cf93-0
01:07:32.960 --> 01:07:36.773
So as we explained earlier,
the functional unit is really the basis

77873d52-cc26-4b27-a23b-bd9036a5cf93-1
01:07:36.773 --> 01:07:38.960
to compute specific embedded emissions.

dc46d69a-3d63-4ebc-b905-1fa4afac26a5-0
01:07:38.960 --> 01:07:43.117
And this is because it's based on the
function the quite in the performance of

dc46d69a-3d63-4ebc-b905-1fa4afac26a5-1
01:07:43.117 --> 01:07:43.960
the C BAM goods.

b854cb64-eae0-4445-9ce6-73abe9b0ba26-0
01:07:44.400 --> 01:07:48.362
So then we saw that production process
are defined per functional unit and

b854cb64-eae0-4445-9ce6-73abe9b0ba26-1
01:07:48.362 --> 01:07:51.743
therefore per CN code,
except for the multifunctional processes

b854cb64-eae0-4445-9ce6-73abe9b0ba26-2
01:07:51.743 --> 01:07:55.600
where several functional unit can be
combined in one production process.

8f89bfb2-59e7-4e30-a02f-72a1f9753997-0
01:07:56.040 --> 01:07:58.489
But in any case,
there can never be more than one

8f89bfb2-59e7-4e30-a02f-72a1f9753997-1
01:07:58.489 --> 01:08:00.400
production process per functional unit.

53c1bdbc-36a2-4c12-8539-4f36b09e797b-0
01:08:00.720 --> 01:08:04.928
This is because then you would split the
production of a functional unit based on

53c1bdbc-36a2-4c12-8539-4f36b09e797b-1
01:08:04.928 --> 01:08:08.264
arbitrary choices such as the destination,
the production route,

53c1bdbc-36a2-4c12-8539-4f36b09e797b-2
01:08:08.264 --> 01:08:11.600
etcetera and not linked with the quality
attributes of the good.

893a86f9-16e1-40ea-974a-15f22478ba2a-0
01:08:12.120 --> 01:08:14.800
So as a consequence,
the answer to this question is no.

402a4526-dbf2-4e33-a5c9-31a5635264de-0
01:08:15.480 --> 01:08:19.480
Specific embedded admission cannot be
calculated just for you production dots.

4616fe73-41a6-408e-bafb-c079ca0d6099-0
01:08:19.480 --> 01:08:23.386
They cannot be calculated just by
production route and also not by

4616fe73-41a6-408e-bafb-c079ca0d6099-1
01:08:23.386 --> 01:08:24.320
precursors used.

3c94ad2b-baa9-4a7e-af0a-4ce60436b69a-0
01:08:25.040 --> 01:08:26.160
Thank you so much, Julie.

4abdfb96-9774-482f-ae1f-c8de706e7e99-0
01:08:26.160 --> 01:08:31.600
And I think that we actually have time
for another last question to Michael,

4abdfb96-9774-482f-ae1f-c8de706e7e99-1
01:08:31.600 --> 01:08:37.040
so that each and every of our speakers
had a little Q&amp;A at the very end.

73abea59-5755-4a4c-adce-f59195c06751-0
01:08:37.520 --> 01:08:40.611
So Michael,
is there a plan to include emissions from

73abea59-5755-4a4c-adce-f59195c06751-1
01:08:40.611 --> 01:08:44.160
electricity systems of third countries
into the sebum system?

5847438e-eb48-4500-8a14-5ef9066c5317-0
01:08:44.560 --> 01:08:44.720
Yeah.

7b9660af-c852-4624-9eeb-424518118d66-0
01:08:44.720 --> 01:08:48.506
So looking at at the question,
I think it's first important to,

7b9660af-c852-4624-9eeb-424518118d66-1
01:08:48.506 --> 01:08:52.885
I have a really clear distinguishing
difference different differentiation

7b9660af-c852-4624-9eeb-424518118d66-2
01:08:52.885 --> 01:08:56.080
between electricity as a good and
indirect emissions,

7b9660af-c852-4624-9eeb-424518118d66-3
01:08:56.080 --> 01:09:00.399
because things differ also with the
events for the future for those two.

b6cf8a4d-9364-4c37-972b-afbebe5dfc31-0
01:09:00.720 --> 01:09:05.277
So electricity as a good is of course
covered by the CMM when electricity is

b6cf8a4d-9364-4c37-972b-afbebe5dfc31-1
01:09:05.277 --> 01:09:06.520
imported into the EU.

5f8980e6-9879-43d0-9a4b-91d7a5a6ff29-0
01:09:06.640 --> 01:09:11.794
And in that case there are some changes
that have been proposed by the Commission

5f8980e6-9879-43d0-9a4b-91d7a5a6ff29-1
01:09:11.794 --> 01:09:13.240
in on 17th of December.

e0a4610a-434a-4c41-9ba5-c5329173ba08-0
01:09:13.240 --> 01:09:17.954
These actually concern the methodology to
calculate the embedded emissions of

e0a4610a-434a-4c41-9ba5-c5329173ba08-1
01:09:17.954 --> 01:09:18.680
electricity.

fe3d0c42-2a4d-4c2c-b435-eb11ae609895-0
01:09:18.760 --> 01:09:21.935
I won't go into much detail because time
is is running here,

fe3d0c42-2a4d-4c2c-b435-eb11ae609895-1
01:09:21.935 --> 01:09:25.320
but just to say the methodology might
change there a little bit.

616208a8-424c-46b5-a1dd-272f0f1c7f52-0
01:09:25.920 --> 01:09:30.678
Another change would concern the
conditions to declare actual emissions of

616208a8-424c-46b5-a1dd-272f0f1c7f52-1
01:09:30.678 --> 01:09:31.440
electricity.

44d637b7-7ad7-4998-8b9b-490e12480462-0
01:09:31.480 --> 01:09:35.880
And there the goal is to make it easier
to declare actual emissions.

de6d561a-df7c-4886-8015-8538843efc81-0
01:09:35.960 --> 01:09:39.040
But in any event,
these are proposals from December.

ee3a6d4f-2e9f-4bf9-b468-224acffbcf4a-0
01:09:39.040 --> 01:09:39.840
So they're online.

64fa3261-e5aa-4c96-a6e3-e219246632a4-0
01:09:39.840 --> 01:09:44.200
If you go to the C Bam web page,
you can find the links to them there.

5b73f160-d195-4fc0-a7d3-70d8ee141c92-0
01:09:44.440 --> 01:09:49.520
They are now being examined by the Co
legislators in Council and Parliament.

a56d9db7-2139-40a6-8e3e-903fbcf3939d-0
01:09:49.680 --> 01:09:52.535
And so we'll have to see what what they
make of it,

a56d9db7-2139-40a6-8e3e-903fbcf3939d-1
01:09:52.535 --> 01:09:56.160
but it's always a good idea to keep an
eye on our C Bam web page.

088f0ff1-3ba7-47d7-aba7-83d866c84667-0
01:09:56.160 --> 01:09:58.440
And there you can see how things move on.

d28494e2-4603-408e-8977-3764afef396f-0
01:09:58.440 --> 01:10:02.051
If there are news from the Co legislature,
if things are decided,

d28494e2-4603-408e-8977-3764afef396f-1
01:10:02.051 --> 01:10:03.200
it will appear there.

69944041-05ea-408a-8fc0-d14c391f0977-0
01:10:03.960 --> 01:10:07.484
Now for indirect emissions,
this is a different case of course,

69944041-05ea-408a-8fc0-d14c391f0977-1
01:10:07.484 --> 01:10:12.000
because here we're talking about AC Bam
goods that is being imported into the EU.

c16647e7-19cf-4f7f-97bd-2699bbd88b37-0
01:10:12.600 --> 01:10:17.344
And the indirect emissions are the ones
from the electricity that is consumed for

c16647e7-19cf-4f7f-97bd-2699bbd88b37-1
01:10:17.344 --> 01:10:21.800
to produce those goods and those we've
looked at previously in the webinars.

6501f7cc-c81b-478a-b803-1b75923d90f8-0
01:10:21.800 --> 01:10:25.600
So these are included in the C Bam for C
bam goods, not in NX2.

3d68d2ef-fbd7-4f8a-8760-8fcf08ba5517-0
01:10:25.640 --> 01:10:29.480
There are some changes between the
transition and a definitive.

ee52203b-7582-416c-8343-99198631583e-0
01:10:29.520 --> 01:10:33.031
That we've also looked at,
but just to mention maybe that the

ee52203b-7582-416c-8343-99198631583e-1
01:10:33.031 --> 01:10:37.563
Commission will also review the indirect
emissions coverage of the C Bum in the

ee52203b-7582-416c-8343-99198631583e-2
01:10:37.563 --> 01:10:37.960
future.

0f03c4a4-45b9-4fa9-a8f8-24a50eb75c5b-0
01:10:37.960 --> 01:10:41.549
And we'll also do that a bit in
coordination with, for instance,

0f03c4a4-45b9-4fa9-a8f8-24a50eb75c5b-1
01:10:41.549 --> 01:10:43.040
stated guidelines etcetera.

974e60d4-625c-4a86-a287-b1f48f41c578-0
01:10:43.240 --> 01:10:48.143
So these things are still coming up,
but just to give you a bit of an idea

974e60d4-625c-4a86-a287-b1f48f41c578-1
01:10:48.143 --> 01:10:52.720
about electricity versus indirect
emissions and plans for the future.

2f7be4e7-4438-4d34-93fb-15c99233c18a-0
01:10:54.120 --> 01:10:58.332
Thank you so much, Michelle,
and thank you all for having been here

2f7be4e7-4438-4d34-93fb-15c99233c18a-1
01:10:58.332 --> 01:10:59.200
with us today.

daa5967c-9d59-4367-ac96-4a07cb04430d-0
01:10:59.680 --> 01:11:02.826
Before passing the floor to Astrid for
the closing remarks,

daa5967c-9d59-4367-ac96-4a07cb04430d-1
01:11:02.826 --> 01:11:06.811
I'd like to highlight that you can find
some useful links at the end of the

daa5967c-9d59-4367-ac96-4a07cb04430d-2
01:11:06.811 --> 01:11:09.800
presentation,
so please consult it as soon as available.

7e987538-5524-476b-91f5-b5d052942ffa-0
01:11:10.080 --> 01:11:10.840
Astrid, please.

82689298-a71f-4d25-b69f-468e9d201cb3-0
01:11:11.960 --> 01:11:15.888
Thank you very much, Sophia,
and thank you very much to all my

82689298-a71f-4d25-b69f-468e9d201cb3-1
01:11:15.888 --> 01:11:20.877
colleagues for their very useful and and
comprehensive contribution to a better

82689298-a71f-4d25-b69f-468e9d201cb3-2
01:11:20.877 --> 01:11:24.120
understanding of the various topics we
cover today.

c0582ee3-6dfe-41a2-8c1b-899dbbf026d9-0
01:11:24.360 --> 01:11:28.490
We hope that you have found this
information useful that it has to help

c0582ee3-6dfe-41a2-8c1b-899dbbf026d9-1
01:11:28.490 --> 01:11:32.677
you first to better understand why the
methodology to calculate embedded

c0582ee3-6dfe-41a2-8c1b-899dbbf026d9-2
01:11:32.677 --> 01:11:37.036
emission based on actual values is
important and how you can prepare to use

c0582ee3-6dfe-41a2-8c1b-899dbbf026d9-3
01:11:37.036 --> 01:11:37.840
actual values.

cd121dcb-1dbb-4049-af8f-bd83077e495d-0
01:11:38.280 --> 01:11:42.160
And then second to also understand some
key aspects of the CIBA methodology.

fdacad9e-fc5a-4d53-8800-04cdb4ff00ee-0
01:11:42.920 --> 01:11:47.932
In a nutshell and in a wrap up as we have
already gone exhaustively around various

fdacad9e-fc5a-4d53-8800-04cdb4ff00ee-1
01:11:47.932 --> 01:11:52.824
topics but good to flag the main changes
that are in the methodology as compared

fdacad9e-fc5a-4d53-8800-04cdb4ff00ee-2
01:11:52.824 --> 01:11:55.120
to the one from the transition period.

acbed612-ca96-4d24-9b23-b6b8ad4e9fdf-0
01:11:55.640 --> 01:11:59.549
With first introduction of the concept of
functional unit which is to be used as

acbed612-ca96-4d24-9b23-b6b8ad4e9fdf-1
01:11:59.549 --> 01:12:03.216
reference to calculate embedded emission
production process that have to be

acbed612-ca96-4d24-9b23-b6b8ad4e9fdf-2
01:12:03.216 --> 01:12:04.520
defined by functional unit.

f35d18f1-163a-4678-8fb5-de6be6319717-0
01:12:04.760 --> 01:12:08.503
The new rules to set up multi functional
production processes,

f35d18f1-163a-4678-8fb5-de6be6319717-1
01:12:08.503 --> 01:12:12.960
the new system boundaries for iron,
steel products and aluminium products.

e32b2d37-7b5b-43e9-810c-9cc529edcb20-0
01:12:13.320 --> 01:12:16.320
The new rules to calculate embedded
emissions of precursors.

70af63ca-0520-4bef-a6b9-ad884e0baa50-0
01:12:16.600 --> 01:12:21.090
And finally a list of elements to include
in the monitoring plan and the operators

70af63ca-0520-4bef-a6b9-ad884e0baa50-1
01:12:21.090 --> 01:12:25.040
emissions report document that will be
used as a basis for verification.

cb5fd30d-a3f1-4c12-a6f5-558ef4888313-0
01:12:25.480 --> 01:12:30.600
So this was in a nutshell the various
topics that we have discussed has already

cb5fd30d-a3f1-4c12-a6f5-558ef4888313-1
01:12:30.600 --> 01:12:31.240
announced.

32ae13b6-202e-43f1-a8fb-1af385ec7171-0
01:12:31.240 --> 01:12:34.204
It's always good to to remind it a more
technical,

32ae13b6-202e-43f1-a8fb-1af385ec7171-1
01:12:34.204 --> 01:12:39.029
detailed and comprehensive guidance will
be provided in the guidance documents for

32ae13b6-202e-43f1-a8fb-1af385ec7171-2
01:12:39.029 --> 01:12:43.738
non E operators which will be published
soon and will allow all of you of course

32ae13b6-202e-43f1-a8fb-1af385ec7171-3
01:12:43.738 --> 01:12:48.040
to have a read through of all those
elements in more details as mentioned

32ae13b6-202e-43f1-a8fb-1af385ec7171-4
01:12:48.040 --> 01:12:48.680
earlier on.

cff226fe-602d-4826-b170-479fdbfd5846-0
01:12:48.680 --> 01:12:52.011
But again,
I think it is useful to remind it the key

cff226fe-602d-4826-b170-479fdbfd5846-1
01:12:52.011 --> 01:12:52.640
takeaways.

85227fcc-a804-416e-b5d3-bfc104b8d5ce-0
01:12:52.680 --> 01:12:56.732
The recording of this webinar will be
available on our website and Please

85227fcc-a804-416e-b5d3-bfc104b8d5ce-1
01:12:56.732 --> 01:13:00.674
remember to subscribe to the SIBAM
newsletter to receive updates on the

85227fcc-a804-416e-b5d3-bfc104b8d5ce-2
01:13:00.674 --> 01:13:03.960
upcoming webinars and information on the
latest SIBAM news.

303459bc-7179-4f7d-a607-7f1410d60bbb-0
01:13:04.480 --> 01:13:07.130
So with this,
I think we have nicely managed to cover

303459bc-7179-4f7d-a607-7f1410d60bbb-1
01:13:07.130 --> 01:13:09.880
all the planned ground within the
allocated time frame.

d8fbb2e5-a15c-4159-b94a-783b677b4a20-0
01:13:10.240 --> 01:13:14.828
Many thanks to all of you for having
joined us today and we will certainly see

d8fbb2e5-a15c-4159-b94a-783b677b4a20-1
01:13:14.828 --> 01:13:16.280
you in upcoming webinars.

79f4842c-730a-4832-bf70-c8b4f95d5f9b-0
01:13:16.360 --> 01:13:16.760
Bye.