Glossary
CBAM factor
The share of the ETS free allocation that is still available to EU producers in a given year; the complement is what CBAM aims to cover for importers.
The CBAM factor describes the gradual phase-in: as EU producers lose their free ETS allowances, CBAM importers pay for a corresponding share of their emissions. During the transitional period the factor is zero; it rises as free allocation is phased out.