How does CBAM account for carbon prices paid in the exporting country?

Deduction for verifiable carbon prices paid abroad

CBAM allows for a reduction in the number of certificates to be surrendered if the importer can prove that a carbon price has already been paid in the country of origin for the declared embedded emissions. This mechanism aims to avoid double pricing of carbon emissions and to encourage the adoption of carbon pricing globally. The carbon price must have been effectively paid and any rebates or compensations are taken into account when calculating the deduction.