What is meant by the 'carbon price paid in the country of origin'?

Consideration of existing carbon pricing mechanisms

The 'carbon price paid in the country of origin' refers to any monetary amount paid under a carbon emissions reduction scheme in the country where CBAM goods are produced.

This could include carbon taxes, emissions trading systems, or other similar mechanisms. CBAM allows for a reduction in the number of certificates to be surrendered if an importer can prove that such a carbon price has been paid for the embedded emissions of imported goods.

This provision aims to avoid double pricing of emissions and to encourage the global adoption of carbon pricing mechanisms.