Can I offset CBAM with carbon taxes paid abroad?

Yes. Carbon prices paid in the origin country (through carbon taxes or ETS like UK ETS, Korean ETS) can be deducted from CBAM obligation. Voluntary carbon credits from offset markets cannot be used.

EU CBAM Carbon Tax Calculator

Q: When do I need to start paying CBAM?

Financial obligations started January 1, 2026 at 2.5%. First certificate purchases required from February 2027. The rate increases yearly to 100% by January 2035.

Q: How much does CBAM cost per tonne of steel?

For BOF steel (1.37 tCO2e/t) at EU ETS price of EUR 80: EUR 2.74/tonne in 2026 (2.5%), EUR 53.16/tonne in 2030 (48.5%), EUR 109.60/tonne at full rate (2035). EAF steel is lower at 0.48 tCO2e/t.

Q: Which countries are most affected by CBAM?

Turkey (largest EU steel exporter), Russia, China, India, Ukraine, and Egypt face highest CBAM costs due to high carbon intensity and limited domestic carbon pricing.

Q: What is the CBAM phase-in schedule?

2026: 2.5%, 2027: 5%, 2028: 10%, 2029: 22.5%, 2030: 48.5%, 2031: 61%, 2032: 73.5%, 2033: 86%, 2034+: 100%. Free allowances decrease correspondingly.

Q: What is the current EU ETS carbon price?

As of early 2026, the EU ETS carbon price ranges between EUR 65-90 per tonne CO2. CBAM certificate price is linked to the weekly average EU ETS auction price.

Q: How to calculate CBAM for aluminum imports?

Aluminum has the highest default emissions factor at 6.60 tCO2e/tonne. For 100 tonnes in 2026 at EUR 80/tCO2: 100 x 6.60 x 80 x 0.025 = EUR 1,320. By 2030: EUR 25,608.

Q: Do I need to become an authorized CBAM declarant?

Yes. Starting January 2026, importers must register as authorized declarants through the CBAM registry. Over 12,000 operators applied in the first week of the definitive phase.

Carbon Border Adjustment Mechanism Estimator

EU CBAM overview: The Carbon Border Adjustment Mechanism (Regulation EU 2023/956) charges a carbon tax on imports of cement, steel, aluminum, fertilizers, electricity, and hydrogen into the EU. It started at 2.5% in January 2026 and phases in to 100% by January 2035. The formula is: CBAM Cost = Quantity × Embedded Emissions × EU ETS Price × Phase-In Rate. As of early 2026, the EU ETS carbon price ranges between €65-90 per tonne CO₂. Importers can deduct carbon prices already paid in the country of origin.

Estimate the cost of the EU Carbon Border Adjustment Mechanism (CBAM) for your imports. See how CBAM costs will increase from 2026 to 2034 as free allowances are phased out, and calculate credits for carbon prices already paid in the origin country.

Import Details

Required

Sector / Product

Quantity (tonnes)

tonnes

Year

Carbon Pricing

EU ETS Carbon Price

€per tCO₂

Current EU Emissions Trading System price (~€65-90)

Carbon Price Already Paid (origin country)

€per tCO₂

Carbon tax or ETS cost already paid in the exporting country

Emissions Factor

Use custom emissions factor instead of default

CBAM Phase-In Schedule

2026: 2.5% CBAM obligation (97.5% free allowances remain)
2030: 48.5% CBAM obligation
2034: 100% CBAM obligation (no more free allowances)
Credits for carbon prices paid in origin country reduce CBAM costs

🏭

Enter import quantity to see costs

Results update instantly as you type

Based on EU Regulation 2023/956 (CBAM) and Commission implementing acts

Default emissions factors are sector averages. Use verified data for compliance.

CBAM Phase-In Schedule (2026-2035)

CBAM phases in gradually as EU ETS free allowances are eliminated. The table below shows the yearly schedule from Regulation (EU) 2023/956.

Year	CBAM Rate	Free Allowance	Status
2023-2025	0%	100%	Transitional (reporting only)
2026	2.5%	97.5%	Current
2027	5%	95%	Upcoming
2028	10%	90%	Upcoming
2029	22.5%	77.5%	Upcoming
2030	48.5%	51.5%	Upcoming
2031	61%	39%	Upcoming
2032	73.5%	26.5%	Upcoming
2033	86%	14%	Upcoming
2034+	100%	0%	Full application

Default Embedded Emissions by Sector

Sector	Emissions Factor	Unit	Notes
Cement	0.87	tCO₂e/tonne	Including clinker and Portland cement
Steel (BOF)	1.37	tCO₂e/tonne	Basic oxygen furnace route
Steel (EAF)	0.48	tCO₂e/tonne	Electric arc furnace (recycled steel)
Aluminum	6.60	tCO₂e/tonne	Primary and secondary aluminum
Fertilizers	2.50	tCO₂e/tonne	Nitrogen-based fertilizers
Electricity	0.50	tCO₂e/MWh	Direct electricity imports
Hydrogen	9.00	tCO₂e/tonne	Green, blue, and grey hydrogen

What is the EU CBAM?

The Carbon Border Adjustment Mechanism (CBAM), established by Regulation (EU) 2023/956, is a carbon tariff on imports into the European Union. It ensures that the carbon price paid for EU-produced goods also applies to imports, preventing "carbon leakage" — the relocation of production to countries with less stringent climate policies.

CBAM Cost Formula

CBAM Cost = Quantity × Embedded Emissions Factor × EU ETS Carbon Price × Phase-In Rate

Importers can deduct any carbon price already paid in the country of origin (e.g., a domestic carbon tax or emissions trading system cost). This prevents double taxation.

CBAM Timeline

October 2023 - December 2025: Transitional period (reporting only, no financial obligation)
January 1, 2026: Definitive phase begins at 2.5% CBAM obligation
February 1, 2027: First CBAM certificate purchases required
2026-2034: Gradual phase-in as EU ETS free allowances are eliminated
January 1, 2035: Full CBAM application (100% carbon cost, 0% free allowances)

Which Products Are Covered?

CBAM covers six carbon-intensive sectors:

Cement: Including clinker and Portland cement (0.87 tCO₂e/tonne)
Iron and Steel: Both basic oxygen furnace (1.37 tCO₂e/t) and electric arc furnace (0.48 tCO₂e/t)
Aluminum: Primary and secondary products (6.60 tCO₂e/tonne)
Fertilizers: Nitrogen-based fertilizers (2.50 tCO₂e/tonne)
Electricity: Direct electricity imports (0.50 tCO₂e/MWh)
Hydrogen: Green, blue, and grey hydrogen (9.00 tCO₂e/tonne)

Impact on Global Trade

CBAM significantly affects trade in carbon-intensive goods with the EU. Countries with high carbon intensity in manufacturing (China, India, Turkey, Russia) will face the highest additional costs. Countries with existing carbon pricing mechanisms (UK, Canada, South Korea, Japan) will see lower CBAM bills due to the carbon price credit deduction.

Frequently Asked Questions

When do I need to start paying CBAM?

The financial obligation started January 1, 2026, with 2.5% of the carbon cost applied. The first CBAM certificate purchases are required from February 1, 2027. Until December 2025, only quarterly reporting was required (transitional period). The rate increases each year until reaching 100% by January 2035.

How much does CBAM cost per tonne of steel?

For BOF steel (1.37 tCO₂e/tonne) at an EU ETS price of €80/tCO₂: In 2026 (2.5% phase-in), the CBAM cost is approximately €2.74/tonne. By 2030 (48.5%), it rises to €53.16/tonne. At full application (2035, 100%), it would be €109.60/tonne. EAF steel costs are lower (0.48 tCO₂e/tonne = €38.40/tonne at full rate). These costs are before any deduction for carbon prices paid in the origin country.

Can I offset CBAM with carbon credits or taxes paid abroad?

Yes. If a carbon price has been effectively paid in the country of origin — through carbon taxes, emissions trading systems (like the UK ETS, Korean ETS, or China's national ETS), or similar mechanisms — that amount can be deducted from the CBAM obligation. This prevents double taxation. However, voluntary carbon credits from offset markets cannot be used for CBAM deductions.

Which countries are most affected by CBAM?

Countries with high carbon intensity and no domestic carbon pricing face the highest CBAM costs. The most affected include: Turkey (largest EU steel exporter), Russia (steel, aluminum, fertilizers), China (steel, aluminum), India (steel, iron), Ukraine (steel, iron), and Egypt (fertilizers). Countries with existing carbon pricing (UK, Canada, South Korea, Japan, Switzerland) benefit from deductions.

What is the CBAM phase-in schedule?

CBAM phases in as EU ETS free allowances are eliminated: 2026 (2.5%), 2027 (5%), 2028 (10%), 2029 (22.5%), 2030 (48.5%), 2031 (61%), 2032 (73.5%), 2033 (86%), 2034+ (100%). The transition period of 2023-2025 required only reporting, with no financial obligations.

What is the current EU ETS carbon price?

The EU ETS carbon price fluctuates based on market conditions. As of early 2026, it ranges between €65-90 per tonne of CO₂. The CBAM certificate price is linked to the weekly average EU ETS auction price. Prices have generally trended upward since the EU ETS reform in 2023. You can track the current price on the European Energy Exchange (EEX) or ICE Endex.

How to calculate CBAM for aluminum imports?

Aluminum has a default emissions factor of 6.60 tCO₂e per tonne — the highest among CBAM sectors. For example, importing 100 tonnes of aluminum in 2026 (2.5% rate) at €80/tCO₂: 100 × 6.60 × 80 × 0.025 = €1,320. By 2030 (48.5%): 100 × 6.60 × 80 × 0.485 = €25,608. If you paid a carbon price of €20/tCO₂ in the origin country, deduct: 100 × 6.60 × 20 × 0.485 = €6,402, so net cost = €19,206.

Do I need to become an authorized CBAM declarant?

Yes. Starting January 1, 2026, importers of CBAM goods must apply for authorized declarant status through the CBAM registry. Unauthorized importers cannot import CBAM goods. Existing importers who reported during the transitional period (2023-2025) had until the start of the definitive phase to apply. Over 12,000 operators applied for authorization in the first week of the definitive phase.

Sources & Regulatory References

This calculator implements the CBAM cost formula from EU regulations. Default emissions factors are based on Commission guidance. All calculations run locally in your browser.

Regulation (EU) 2023/956 of the European Parliament and of the Council — Establishing a Carbon Border Adjustment Mechanism. Published in the Official Journal of the European Union.
Commission Implementing Regulation (EU) 2023/1773 — CBAM transitional rules, reporting requirements, and default emissions values.
EU ETS carbon price data from the European Energy Exchange (EEX) and ICE Endex.
Phase-in schedule and free allowance reduction rates from Annex IIIa of EU ETS Directive (as amended).