What is the effective ‘carbon price’ due that importer need to report on?
As indicated in the CBAM Regulation, a carbon price is the monetary amount paid in a third country, under a carbon emissions reduction scheme, which can adopt various forms such as a tax, levy, fee or emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure, and released during the production of goods.
During the transitional period, reporting declarants must report the effective carbon price due in the jurisdiction where the CBAM good was produced. During the definitive period, the disclosure of this information will give importers a rebate, to avoid double pricing of embedded emissions.
Source: EC’s Questions and Answers on CBAM
CBAM Regulation
CBAM Regulation 2023_956