How is the CBAM levy calculated?

Embedded emissions equal import tonnage multiplied by the carbon intensity of the product (tonnes CO2e per tonne). That figure is priced at the weekly average EU ETS allowance price. Any carbon price already paid in the origin country is deducted, and during the phase-in the EU ETS free-allocation share reduces the chargeable amount.

What is the embedded carbon intensity figure?

It is the greenhouse-gas emissions released to make one tonne of the product, expressed in tonnes of CO2 equivalent. You should use actual verified emissions from your supplier where available; default values published by the Commission can be used where actual data is not available, but they are typically conservative.

Which products are covered by CBAM?

The initial scope is the most carbon-intensive sectors at high risk of leakage: iron and steel, cement, aluminium, fertilisers, electricity, and hydrogen, plus certain precursors and downstream products. Scope is expected to widen over time, so check the latest CN-code list for your goods.

Does paying a carbon price abroad reduce my CBAM bill?

Yes. If a carbon price was already effectively paid on the embedded emissions in the country of production, that amount is deducted from the CBAM charge so the same tonne of CO2 is not priced twice. You must be able to evidence the price actually paid.

Is this an official figure?

No. This is a planning estimate using your inputs. The binding obligation depends on verified emissions data, the official weekly ETS price, the phase-in free-allocation factor, and the rules in force on the import date. Use it to gauge exposure, not to file a declaration.

CBAM Carbon Cost Estimator

The EU Carbon Border Adjustment Mechanism (CBAM) puts a carbon price on imports of certain goods so that EU producers paying for emissions under the ETS are not undercut by higher-emitting imports. This estimator turns your import figures into an indicative CBAM cost.

How it works

embedded CO2e   = tonnage × carbon intensity (tCO2e per tonne)
gross cost      = embedded CO2e × EU ETS price
chargeable CO2e = embedded CO2e × (1 − ETS free-allocation factor)
levy            = chargeable CO2e × ETS price − carbon already paid abroad
certificates    = chargeable CO2e (rounded up)

During the phase-in, the share of emissions still benefiting from free ETS allocation is excluded from the charge; that share falls to zero as the mechanism fully applies. The carbon price already paid in the origin country is subtracted so the same emissions are not priced twice.

Example and notes

Importing 1,000 tonnes of steel at 1.9 tCO2e per tonne, with an ETS price of 80 per tonne and no free-allocation relief, gives 1,900 tonnes of embedded CO2e and a gross levy of 152,000. If 20 per tonne of CO2 was already paid abroad, that 38,000 is deducted, leaving 114,000. Always prefer verified supplier emissions over default values — defaults are deliberately conservative and usually push your bill higher than actual data would.