CBAM cost calculation formula: a worked example
Specific embedded emissions × certificate price × tonnes imported. The formula EU importers will use, with a worked example and the current mark-up.
Published 19/10/2026 · Facts checked on 2026-10-18
Answer box
CBAM cost = Specific embedded emissions × Certificate price × Tonnes imported − Carbon price paid in origin country. The certificate price tracks the EU ETS allowance price. When actual verified data is not available, specific embedded emissions comes from the EU default value for that CN × origin, plus the yearly mark-up (+10 % in 2026, +20 % in 2027, +30 % from 2028).
Variables
| Variable | What it is | Where it comes from |
|---|---|---|
| SEE | Specific embedded emissions (t CO₂e / t) | Supplier data (verified) or default + mark-up |
| P | CBAM certificate price (€ / t CO₂e) | EU-ETS-tracking weekly auction price |
| T | Tonnes of in-scope goods imported | Customs declaration |
| CPP | Carbon price paid in origin (€ / t CO₂e) | Producer document + verifier opinion |
A worked example (illustrative)
Do not use these numbers for a real declaration. Real defaults live in the Commission reference tables; real certificate prices are set weekly.
- Importing 100 tonnes of hot-rolled coil (CN 7208) from a country with no domestic carbon price.
- Default SEE = X t CO₂e / t (from IR 2025/2621 as corrected by 2026/1740).
- 2026 mark-up: +10 %. So reporting SEE = X × 1.10.
- Certificate price: current weekly auction level.
Cost ≈ 100 × X × 1.10 × P.
CBAMWorks produces this number in-dashboard, substituting real reference values. The honest point: the mark-up compounds every year — real supplier data is the lever that keeps the cost reasonable.