CBAM takes into account the carbon price actually paid in the country of production: if the producer has already paid for its emissions, for example through a carbon tax or the cost of allowances in a national trading system, the EU importer can reduce the number of CBAM certificates it surrenders. This way, the mechanism avoids charging twice for the same emissions.
Why this adjustment exists
The aim of CBAM, established by Regulation (EU) 2023/956, is to equalize the carbon burden on European and imported goods, not to charge twice. If the country of production has its own carbon pricing mechanism, part of that burden has already been borne, so the regulation allows it to be taken into account when the obligation is calculated. For how the mechanism works in general, see CBAM: what it is.
What counts as a carbon price paid
This means a monetary payment linked to greenhouse gas emissions that was actually paid for the emissions embedded in the goods. In practice, that is:
- a carbon tax or levy calculated on the volume of emissions;
- the cost of units that the producer is required to surrender under a regulated emissions trading system.
The key word is “actually”. What counts is what was really paid, net of any rebates or compensation the producer may have received. The mere existence of a climate law or a voluntary carbon market in the country does not mean that a carbon price has been paid. For the difference between voluntary and regulated markets, see Voluntary and compliance carbon markets.
Detailed rules for recognition and calculation are set by EU legal acts; check them in regulatory documents.
How it affects the number of certificates
The calculation logic:
- The embedded emissions of the imported goods are determined.
- The portion corresponding to free EU ETS allocation for similar products in the EU is deducted (this portion is being phased out gradually).
- The number of certificates is reduced further to account for the carbon price paid in the country of production.
Illustrative example (figures in notional currency units, CU, purely to illustrate the logic; free allocation is left out):
- embedded emissions of the consignment: 1,000 t CO₂e;
- paid in the country of production for these emissions: 10 CU per tonne of CO₂e;
- CBAM certificate price: 80 CU.
Amount paid: 1,000 × 10 = 10,000 CU. At the certificate price, this is equivalent to 10,000 / 80 = 125 certificates. The importer surrenders 1,000 − 125 = 875 certificates instead of 1,000.
What data the producer must provide
For the importer to claim the reduction, the producer must substantiate:
- which carbon pricing mechanism applies, and to which emissions;
- how much was actually paid for the reporting period, and for which emissions;
- whether any rebates, exemptions or compensation were granted;
- how the amount paid relates to the specific product (per tonne of product).
This information supplements the core installation data package; see CBAM for exporters.
What matters for Uzbekistan and Belarus
National emissions regulation does not in itself amount to a carbon price paid in the CBAM sense. Whether national payments qualify has to be checked against EU rules for the specific country and mechanism. For Uzbekistan and Belarus, the current status is reflected in the list of regulatory documents once it has been reviewed.
How it works in the platform
- The CBAM contour is still in development and marked “Soon”.
- You can already calculate the installation's emissions to which a carbon price paid would be linked: in Data entry, a facility's Scope 1 and 2 emissions are calculated from monthly fuel and energy records.
- The platform does not yet track the carbon price paid as a separate indicator.
Frequently asked questions
Do purchases of voluntary carbon credits count?
A producer's voluntary retirement of units is not a mandatory payment for emissions. Check how EU rules treat such cases in the regulatory documents; under the general logic of the mechanism, it is mandatory payments that count.
Who claims the reduction, the producer or the importer?
The importer claims the reduction in its annual declaration, relying on documents provided by the producer.
Can the obligation be reduced to zero?
If the carbon price paid is comparable to the EU price, the obligation can fall substantially. But the reduction cannot exceed the amount actually paid for the embedded emissions.