What factors determine the effective carbon price due?

Several factors contribute to determining the effective carbon price due:

1. Actual Carbon Price: The price of a tonne of CO2e in the carbon pricing scheme of the jurisdiction where the goods are produced.
2. Emission Coverage: The extent to which emissions from the production processes are covered by the carbon pricing scheme, including both direct and indirect emissions.
3. Applicable Rebates: Any rebates received, such as free allocation in the case of an Emissions Trading System (ETS), financial support, compensation, or other forms of rebate, per tonne of the CBAM goods.
4. Carbon Price of Precursor Materials: For complex goods, the carbon price due (after accounting for any rebates) of any precursor materials consumed in the production process.