What you need to work out Carbon Price Relief
Find out what you need to work out the Carbon Price Relief you might claim for Carbon Border Adjustment Mechanism (CBAM) goods.
To work out Carbon Price Relief you’ll need:
- a completed carbon pricing verification form — find out how to get a carbon pricing verification form
- some publicly available information
Carbon pricing verification form
You will need to get a completed carbon pricing verification form:
- either directly from the installation (factory, plant or facility) that manufactured or processed the CBAM good, or from your supply chain
- for each good you wish to claim relief for, even in instances where a CBAM good is used in the manufacturing and processing of another CBAM good
You must make sure that the carbon pricing verification form has been completed correctly by a verification body that meets the relevant standards.
The carbon pricing verification form will not contain all the information you need to work out the amount of Carbon Price Relief. You will also need to use publicly available information for the qualifying carbon pricing scheme your goods have been subject to.
Publicly available information
You’ll need to use publicly available information to work out the price that embodied emissions were subject to.
You’ll need to do this for each CBAM good you wish to claim relief for, even where a CBAM good is used in the manufacturing and processing of another CBAM good.
It’s your responsibility to get the publicly available information for the:
- headline carbon price
- graduated carbon prices (if there are any)
- compensation received or due (if there’s any)
- greenhouse gas removals prices (if there are any)
This information should have been published by the scheme administrator, or organisations that do so on their behalf.
You do not need to get information on the price of emissions that were subject to free allowances or were beneath the threshold. This information should not be included when working out how much Carbon Price Relief you may claim.
If this information is not publicly available, the scheme is not a qualifying carbon pricing scheme and you cannot claim Carbon Price Relief.
Headline carbon price
The carbon pricing verification form will tell you the name of the carbon pricing scheme.
You will need to find the headline carbon price for the relevant scheme using publicly available information.
You must work out the mean average of the headline carbon price over the calendar quarter (for example January to March) prior to the point of import.
Example
If the CBAM good was imported in March 2030, you would have to:
- identify the carbon pricing scheme
- find the headline carbon price
- work out the average headline carbon price between October to December 2029
Graduated carbon prices
The carbon pricing verification form will tell you the name of the carbon pricing scheme and if there are any graduated carbon prices.
You will need to find the graduated carbon price for the relevant scheme using publicly available information.
You must work out the mean average of the graduated carbon prices over the calendar quarter (for example January to March) prior to the point of import.
Example
If the CBAM good was imported in March 2030, you would have to:
-
identify the carbon pricing scheme
-
find the graduated carbon price
-
work out the average graduated carbon price between October to December 2029
Greenhouse gas removals
The carbon pricing verification form will tell you the name of the carbon pricing scheme and if there are any greenhouse gas removals that qualify for Carbon Price Relief.
You will need to find the greenhouse gas removals price recognised by this scheme using publicly available information.
You must work out the mean average of the headline carbon price over the calendar quarter (for example January to March) prior to the point of import.
Example
If the CBAM good was imported in March 2030, you would have to:
-
identify the carbon pricing scheme
-
find the greenhouse gas removals price
-
work out the average greenhouse gas removals price between October to December 2029
For greenhouse gas removals, the price needs to have been made publicly available by the respective greenhouse gas removal provider.
Only payments that are recognised by a qualifying carbon pricing scheme will be in scope to claim the relief.
Working out your Carbon Price Relief
Once you have everything you need, you need to work out the relief.