The EU Carbon Border Adjustment Mechanism (CBAM) requires importers to purchase certificates at the ETS carbon price starting in 2026. Use this guide to understand how CBAM costs are calculated — from embedded emissions and free allocation to the final certificate cost per tonne of imported product. CbamTrack automates every step of this calculation for steel, aluminium, cement, fertiliser, hydrogen, and electricity importers.
CbamTrack's calculation engine implements IR (EU) 2025/2621 and IR (EU) 2025/2620 methodologies. The process follows four steps, from data entry to final certificate cost.
Input CN code, country of origin, tonnage, and consumption data per product. The platform auto-maps emission factors from IR 2025/2621.
Direct and indirect emissions computed per product. Steel gets indirect emission exemption; aluminium and cement include full emissions.
Live EU ETS certificate price applied to payable emissions. Free allocation phase-out rate calculated based on the reporting year (2.5% in 2026, up to 100% in 2034).
See your total CBAM liability per product and per quarter. Export the calculation as part of your compliant CBAM report.
Enter your product details below for a quick cost estimate. Results are illustrative — your actual liability depends on verified emission factors and exact product classification.
Flat-rolled products, CN 72xx
Emission factor: 2 tCO₂e/t. Benchmark: 1.37 tCO₂e/t. ETS price: €75.36/tCO₂e (Q1 2026). Free allocation phase-out: 2.5% in 2026.
€60,069
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Understanding the math behind your CBAM liability helps you plan and optimize your compliance strategy.
Direct Emissions + Indirect EmissionsIndirect emissions are exempt for steel products (CN 72xx)
Total Embedded Emissions − Free AllocationFree allocation = benchmark × tonnage × (1 − phaseOutRate)
Chargeable Emissions × ETS Certificate PriceQ1 2026 ETS price: €75.36/tCO₂e
For a shipment of 800 tonnes of flat-rolled steel (CN 7208) produced via the BF-BOF route:
| Metric | Value |
|---|---|
| Direct Emissions | 100.754 tCO₂e |
| Indirect Emissions | 54.120 tCO₂e (exempt for steel) |
| Total Embedded Emissions | 154.874 tCO₂e |
| Chargeable Emissions | 100.754 tCO₂e |
| Benchmark (BF-BOF) | 1.37 tCO₂e/t |
| Free Allocation | 1068.600 tCO₂e |
| Payable Emissions | 0 tCO₂e (within free allocation) |
| CBAM Cost (€75/tCO₂e) | €0.00 |
In 2026, most steel imports remain within free allocation limits. As the phase-out progresses toward 2034, payable emissions will increase. Use CbamTrack's simulator to model different scenarios.
The built-in calculator in your dashboard applies your actual product data, prices, and phase-out rates automatically.