A certified CBAM declarant ought to have the privilege to request a deduction in the quantity of CBAM certificates required to be surrendered, equivalent to the carbon price that has already been effectively paid in the origin country for the declared embedded emissions of CBAM goods.

The CBAM Regulation broadly identifies a ‘carbon price’ as the “financial amount paid in a third country, under a scheme for reducing carbon emissions, whether as a tax, charge, or fee, or in the guise of emission allowances within a greenhouse gas emissions trading scheme (…)”.

Only the carbon price “effectively paid in the country of origin” will be eligible for a reduction in the number of CBAM certificates. If the certified CBAM declarant receives any discount or other form of financial relief, this advantage will be considered in determining the carbon price that has been effectively paid.

The Commission is to draft, before the termination of the transitional phase in 2025, an implementing act that will provide further specifics on calculating the carbon price effectively paid in the country of origin (refer to Article 9(4) of the CBAM Regulation).