CBAM Liability
The number of CBAM certificates to be surrendered by an authorised CBAM Declarant is based on;
- The embedded emissions of imported CBAM goods, expressed in tonnes of CO₂ equivalent (t CO₂e) per tonne of product (or per MWh in case of imported electricity).
- The adjustment for free allocation that would have been granted if the same good had been produced in the EU by an installation covered by the EU ETS.
- The adjustment for any carbon price paid in a third country where the CBAM good was produced.
- The number of CBAM certificates is then multiplied by the price of CBAM certificates to give your overall CBAM liability.
Estimating your CBAM Liability
The calculator tool below can be used to estimate your CBAM liability. It uses the European Commissioned published default values and methodology. In column A of the liability calculator, you can change the year and certificate price to estimate your liability over time.
Disclaimer: This tool is intended to provide a high-level estimate only and Authorised CBAM Declarants will be responsible for managing and tracking their own liability. Please note that in future years, inputs including default values and benchmarks are expected to change. We are awaiting secondary legislation on carbon price paid in a third country which is not currently included in the calculator.
Free allocation adjustment
EU ETS industry sectors exposed to a significant risk of carbon leakage are entitled to receive a part of their emission allowances free of charge. While the CBAM is being phased in, free allocation in the EU ETS will be phased out accordingly for sectors covered by the CBAM. During that phase-out period, the CBAM obligation is adjusted to mirror the free allocation received under the EU ETS and to ensure an equivalent carbon price.