How will the carbon price paid in a third country be discounted from the CBAM?
An authorised CBAM declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the carbon price already effectively paid in the country of origin for the declared embedded emissions of CBAM goods.
The CBAM Regulation defines a ‘carbon price’ fairly broadly, as the “monetary amount paid in a third country, under a carbon emissions reduction scheme, in the form of a tax, levy or fee or in the form of emission allowances under a greenhouse gas emissions trading system (…)”.
Only the carbon price that has been “effectively paid in the country of origin” will count for a reduction of the number of CBAM certificates. Should the authorised CBAM declarant benefit from any rebate or other form of compensation, the benefit will be taken into account to establish the carbon price effectively paid.
The Commission will prepare, before the end of the transition period in 2025, an implementing act setting out additional details for the calculation of the carbon price effectively paid in the country of origin (see Article 9(4) of the CBAM Regulation)
Source: EC’s Questions and Answers on CBAM
CBAM Regulation
Regulation 2023_956