CBAM Formula, Explained
No jargon: certificates = mass × intensity × factor, priced in euros per tonne. Here is each variable, where it comes from, and how to read it.
Example value — check this week’s official EU ETS auction average
Share of emissions you buy certificates for, as EU ETS free allowances phase out.
| Goods | Category | Tonnes | tCO2e / t | Remove |
|---|---|---|---|---|
Intensities are editable examples — replace with your verified values or official defaults.
Estimation tool for planning and education only — not legal, tax or compliance advice. Official default values, certificate prices and methodology are published by the European Commission; always verify against the official sources before filing or pricing contracts. See data sources & methodology
About cbam formula, explained
The working formula this calculator applies: certificates to surrender (tCO2e) = net mass (t) × specific embedded emissions (tCO2e/t) × CBAM factor (%), and cost = certificates × certificate price (€/tCO2e).
Specific embedded emissions means the direct (and, for most goods, indirect) emissions per tonne embedded in the production of the goods — not the emissions of shipping them. The CBAM factor is the share you actually buy certificates for under the free-allocation phase-out schedule of Regulation (EU) 2023/956: 2.5% in 2026 rising to 100% by 2034.
The calculator shows every intermediate number — total mass, embedded tCO2e, certificates, factor — so you can audit the arithmetic, not just the answer. All inputs are editable and the methodology page lists official sources.
Frequently asked questions
Does the formula include shipping emissions?
No — CBAM prices the emissions embedded in producing the goods, not transport to the border. (Shipping has separate EU rules.)
Where do default intensities come from?
The European Commission publishes default values in the CBAM legislation; this tool deliberately labels its intensities as examples and links to the official sources so you never mistake a placeholder for regulation.
Is my data uploaded anywhere?
No. The calculator is a static page — parsing, math and the report all happen in your browser. There is no server-side form handler at all.
How accurate is the estimate?
The arithmetic is exact; the inputs carry the uncertainty. Certificate prices move weekly, intensities vary by installation, and rules evolve — hence the range and the disclaimers.
Is this legal or compliance advice?
No. It is an estimation and education tool. Official rules, default values and prices are published by the European Commission; verify before filing or contracting.