EU Carbon Border Adjustment Duty Estimator

Translate imported tonnage, verified carbon intensity, EU ETS pricing, and remaining free allocations into projected Carbon Border Adjustment Mechanism certificate volumes and cash outlays so trade compliance, treasury, and sustainability teams can plan hedges and reporting together.

Aggregate mass of covered goods scheduled to enter the EU during the compliance year.
Include direct emissions intensity confirmed by the non-EU producer or default values if verification is pending.
Use your hedged forward curve or the prevailing EU ETS settlement price for the reporting period.
Percentage of embedded emissions offset by qualifying free allowances from domestic production.
Defaults to 1.08. Override to translate the euro total into USD for treasury planning.

Reference CBAM legislation and compliance advisors to confirm reporting requirements and certificate purchase timing for your specific import flows.

Examples

  • 12,000 t imports, 1.85 tCO₂e/t, €95 carbon price, 10% free share ⇒ Certificates 19,981.50 tCO₂e, annual cost €1,898,100.00, quarterly €474,525.00, USD equivalent $2,049,948.00.
  • 4,500 t imports, 0.55 tCO₂e/t, €82 carbon price, 0% free share, FX 1.05 ⇒ Certificates 2,475.00 tCO₂e, annual cost €202,950.00, quarterly €50,737.50, USD equivalent $213,097.50.

FAQ

Do I include shipping emissions in the intensity input?

No. CBAM currently focuses on embedded production emissions. Treat transport-related CO₂ separately within your scope 3 accounting.

How should I handle suppliers without verified emissions data?

Use the EU default values for the relevant commodity or CN code, then update the intensity input once verified figures arrive to avoid overpaying.

Can I net existing EU ETS allowances against the CBAM total?

The mechanism requires purchasing CBAM certificates specifically. Model any EU ETS holdings separately and only reduce the free allocation share when domestic allowances formally offset CBAM liability.

What carbon price should I enter for multi-year contracts?

Use your hedged forward strip or internal forecast rather than today’s spot price so procurement and treasury align on the same budgeting assumption.

Additional Information

  • Calculations treat the intensity input as verified direct emissions for the covered goods; include indirect emissions only if CBAM guidance requires them for your CN code.
  • Free allocation share reduces certificates in proportion to qualifying EU production; if none apply, leave the value at 0 to model full CBAM coverage.
  • Quarterly estimate divides the annual obligation by four to mirror the current EU reporting cadence; adjust if your authority specifies a different cadence.
  • USD conversion is for planning only and assumes settlement at the FX rate provided on calculation date.

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