Calculation Methodology
We believe in full transparency. Here is exactly how our calculators work, what data sources we use, and what assumptions we make.
1. Core CBAM Cost Formula
CBAM Cost = Quantity (t) × Emission Factor (tCO₂e/t) × EU ETS Price (€/tCO₂)The CBAM certificate cost is a function of three variables:
- Import Quantity — the mass of goods imported, measured in tonnes (or MWh for electricity).
- Emission Factor — the embedded CO₂ emissions per tonne of product. This can be the EU default value (with markup) or the actual verified emission data from your supplier.
- EU ETS Price — the weekly average price of EU Emissions Trading System allowances. Our calculator uses a representative price that we update periodically.
2. Default Emission Values
When importers do not provide verified supplier-specific emission data, the EU requires use of default emission values. These are set deliberately high — typically based on the worst-performing 10% of installations in the exporting country — to incentivize collection of real data.
Important: A markup penalty is applied on top of default values. The schedule is:
- • 2026: +10% markup
- • 2027: +20% markup
- • 2028 onwards: +30% markup
Legal basis: Article 7(2) and Annex IV of Regulation (EU) 2023/956. Default values are published by the European Commission in implementing acts.
3. Origin Country Carbon Price Deduction
If the country of origin has an explicit carbon price (carbon tax or ETS), the amount already paid is deducted from the CBAM liability. This avoids double taxation.
Net CBAM = Gross Cost − (Total Emissions × Origin Carbon Price)| Country | Carbon Price (€/tCO₂) | Deductible |
|---|---|---|
| China | ~€8 | Yes |
| South Korea | ~€15 | Yes |
| South Africa | ~€9 | Yes |
| Turkey | ~€5 | Yes |
| Japan | ~€3 | Yes |
| India, Russia, US, Brazil, etc. | €0 | No |
Carbon prices are approximate and updated periodically. Actual deductions require documentary proof (Art. 9 Regulation (EU) 2023/956).
4. Data Sources & Updates
EU ETS Price
Updated manually from Trading Economics / ICE Endex. We use a representative average rather than real-time quotes. The "last updated" date is shown on every page that displays prices.
Default Emission Values
Sourced from EU Commission implementing regulations and the CBAM transitional registry guidance documents. Values are updated when new implementing acts are published.
HS Codes
Annex I of Regulation (EU) 2023/956, as amended. Our database covers all CBAM-relevant Combined Nomenclature (CN) codes.
Country Carbon Prices
Based on World Bank Carbon Pricing Dashboard and country-specific ETS registry data. Approximate values; actual deductions require documentation.
5. Limitations & Assumptions
- ⚠️EU ETS prices fluctuate daily. Our calculator uses a periodically updated representative price, not a live market feed. Actual certificate purchase prices may differ.
- ⚠️Default emission values are simplified to product-category level. The EU assigns more granular values based on specific CN codes and production routes.
- ⚠️Free allocation adjustments (where applicable) are not factored into our estimates. As free allocations phase out (2026–2034), this becomes less relevant.
- ⚠️This tool provides estimates only and is not a substitute for professional CBAM compliance advice. Always consult qualified advisors.