carbon price

the monetary amount paid in a third country, under a carbon emissions reduction scheme, in the form of a tax, levy or fee or in the form of emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure, and released during the production of goods

A carbon price is any amount already paid in the country of production for the emissions in a good — through a domestic tax, levy or emissions trading scheme. If a declarant can prove that price was genuinely paid, they can deduct it from the number of CBAM certificates they need to surrender, so the same emissions aren't priced twice. The proof has to be certified by someone independent, and the records kept for several years.

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