Fastener CBAM DeskGuides

CBAM free allocation adjustment: benchmarks, CBAM factor and CSCF

Updated 2026-11-10 · Data: default values v2 (6 Aug 2026) · benchmarks (6 Feb 2026) · certificate prices to Q3 2026

CBAM does not charge for all embedded emissions. EU producers still receive free allocation, so imports get a matching deduction, set by the benchmark, the CBAM factor and the CSCF.

Key points
  • Certificates per tonne = SEE − SEFA × CBAM factor × CSCF.
  • Default path: SEFA = column-B benchmark, route as shown in the default-value table ((C) for China carbon-steel fasteners).
  • Actual path: SEFA = column-A process benchmark + precursor use × precursor SEFA.
  • CBAM factor 97.5% in 2026, 0 in 2034; CSCF set at 100% for 2026–2030.

1. The formula

Certificates per t = max(0, SEE − SEFA × CBAM factor × CSCF)
Cost per t = certificates × price − verified carbon price paid at origin

SEE is specific embedded emissions (default values marked up); SEFA is the specific embedded free allocation. Structure from Implementing Regulation (EU) 2025/2620 and Commission Guidance No. 4.

2. Column A and column B

Column AColumn B
MeaningOwn-process benchmark onlyWhole-chain benchmark incl. precursors
Used withActual dataDefault values
7318 carbon steel0.038(C) 1.364 / (D) 0.475 / (E) 0.066
7318 stainless0.038(1) 1.154 (2026–27) / (2) 1.116 (2028–30)
73080.112(C) 1.491 / (D) 0.567 / (E) 0.141

Which route on default values? Guidance No. 4, section 2.2.1.2: the route shown in the last column of the default-value table (Annex I to 2025/2621) for that country and code. China rows for carbon-steel 7318, 7308 and 7326 show (C), so the default path deducts (C) even for EAF producers.

3. CBAM factor and CSCF

The CBAM factor is the share of EU free allocation still granted, falling each year under Article 10a(1a) of the ETS Directive (Guidance No. 4, table 2-1). The cross-sectoral correction factor for 2026–2030 has been published in Implementing Decision (EU) 2026/1862 (cited in Guidance No. 4) at 100%, i.e. 1.0.

YearCBAM factorDefault mark-up7318 15 82 certificates per t
202697.5%10%5.6826
202795.0%20%6.3542
202890.0%30%7.0599
202977.5%30%7.2304
203051.5%30%7.5850
203139.0%30%7.7555
203226.5%30%7.9260
203314.0%30%8.0965
20340.0%30%8.2875

China default 6.375 and column B (C) 1.364; price not applied. Assumes no further corrections to the default values or benchmarks.

The same shipment needs 1.46× as many certificates in 2034 as in 2026. Even at a flat price, default-value cost rises every year.

4. Deduction on the actual path

Guidance 5d example 3: carbon-steel screws, column A 0.038, steel use 1.176 t/t, precursor SEFA 1.242. SEFA = 0.038 + 1.176 × 1.242 = 1.4986; × 0.975 = 1.4611. The precursor SEFA enters unadjusted; the factor is applied once at the end.

Official sources

  1. European Commission – Guidance No. 4: free allocation adjustment (14 Aug 2026; CBAM factor Table 2-1, section 2.2.1.2)
  2. European Commission – CBAM benchmarks Excel (Implementing Regulation (EU) 2025/2620, Annex point 5)
  3. Implementing Regulation (EU) 2025/2620 (free allocation adjustment)
  4. Implementing Decision (EU) 2026/1862 (cross-sectoral correction factor 2026–2030)
  5. European Commission – CBAM default values, v2 Excel (6 Aug 2026, correcting Implementing Regulation (EU) 2025/2621 via 2026/1740)
  6. European Commission – Guidance No. 5d: iron and steel (14 Aug 2026; example 3, tables 4-12 to 4-14)
  7. European Commission – Guidance No. 3: methods for calculating embedded emissions (14 Aug 2026; mark-ups 10/20/30%)

Related guides