Work out your Carbon Price Relief

To work out your Carbon Price Relief, you’ll need to:

Before you calculate your relief, you’ll need to check:  

if your CBAM goods have been subject to a qualifying carbon pricing scheme 

you have a completed carbon pricing verification form that’s independently verified for one of the two calendar years prior to the calendar year in which the CBAM good was imported

you have the publicly available information you need to calculate your Carbon Price Relief 

Follow the calculation steps to work out the effective carbon price. Do not include the following in your calculations: 

emissions subject to greenhouse gas removals with no public price 

emissions subject to free allowances or thresholds as they have no price 

any compensation, refunds or rebates, as this is done afterwards

Find the total installation emissions (tCO2e) on the carbon pricing verification form. You must check this figure was recorded for one of the two calendar years prior to the calendar year in which the CBAM good was imported.

Identify the number of those emissions in ‘Step 1’ that were subject to different elements of the qualifying carbon pricing scheme, as listed on the carbon pricing verification form.

Multiply the emissions subject to each element of the qualifying carbon pricing scheme by the price per tCO2e for each element. For emissions subject to a headline carbon price, greenhouse gas removals or graduate carbon price, the price should be publicly available, from the previous calendar quarter, and where not fixed must be mean average over this period. Add together the resulting figures for each of the relevant elements.

Divide the totalled figure in ‘Step 3’ by the total installation emissions that you found in ‘Step 1’. This gives you the effective carbon price.

If the installation has received or is due to receive compensation in the same calendar year as the emissions in ‘Step 1’ and it’s listed in the same carbon pricing verification form, you need to adjust the effective carbon price by: