CBAM free allocation adjustment and benchmarks explained
CBAM does not charge for every tonne of CO₂ embedded in an import. EU producers of the same goods still get part of their EU ETS allowances for free, so importers get an equivalent deduction: the free allocation adjustment. It shrinks every year until 2034.
The formula
free allocation adjustment per tonne = CBAM benchmark × CBAM factor × CSCF
certificates = mass × (embedded emissions per tonne − free allocation adjustment per tonne)
- CBAM benchmark
- tCO₂e per tonne of product, by CN code and production route, set in point 5 of the Annex to Implementing Regulation (EU) 2025/2620. See all benchmarks.
- CBAM factor
- The share of free allocation still granted to EU producers that year.
- CSCF
- The EU ETS cross-sectoral correction factor. The Commission has indicated a value of 1 for 2026–2030.
Column A or column B?
With default values the importer uses column B, the default benchmark for the whole production chain, and the production route that the default value table names for the country (for example BF/BOF steel for most countries, or secondary aluminium where scrap dominates). With actual values the adjustment is built up from the process benchmark in column A plus the embedded free allocation of each precursor, weighted by the mass actually used.
CBAM factor 2026–2034
| Year | CBAM factor | Benchmark-level emissions priced |
|---|---|---|
| 2026 | 97.5 % | 2.5 % |
| 2027 | 95 % | 5 % |
| 2028 | 90 % | 10 % |
| 2029 | 77.5 % | 22.5 % |
| 2030 | 51.5 % | 48.5 % |
| 2031 | 39 % | 61 % |
| 2032 | 26.5 % | 73.5 % |
| 2033 | 14 % | 86 % |
| 2034 | 0 % | 100 % |
Example: primary aluminium from Türkiye
Unwrought aluminium (CN 7601) from Türkiye has a default value of 1.700 tCO₂e/t before mark-up and route K (primary aluminium), with a column B benchmark of 1.423 tCO₂e/t. Cost per tonne at a constant €82.32:
| Year | Default value incl. mark-up | Adjustment | Certificates / t | € / t |
|---|---|---|---|---|
| 2026 | 1.870 | −1.387 | 0.483 | €39.73 |
| 2028 | 2.210 | −1.281 | 0.929 | €76.50 |
| 2030 | 2.210 | −0.733 | 1.477 | €121.60 |
| 2032 | 2.210 | −0.377 | 1.833 | €150.88 |
| 2034 | 2.210 | −0.000 | 2.210 | €181.93 |
The cost rises for two reasons: the mark-up on default values climbs to 30 % in 2028, and the adjustment falls to zero in 2034. Budgets made with 2026 figures will understate later years by a wide margin. Model your own goods in the cost calculator (change the year).
Electricity
For electricity the free allocation adjustment is zero: EU power generators receive no free allocation.