EU Reg 2023/956, Art. 9 · CBAM Q&A Q3.7, Q3.10, Q4.32

Article 9: the carbon price deduction, worked through

If a carbon price was genuinely paid in the country of origin, Article 9 lets you deduct it — but the mechanics are more specific than "subtract what you paid."

By Sridhar Mothe · Founder, CarbonAtlas

Last verified: 02 September 2026

What Article 9 actually credits

If a carbon price was genuinely paid on a good in its country of origin, Article 9 of EU Regulation 2023/956 lets you deduct that from your CBAM certificate obligation — the logic being you shouldn't pay twice for the same tonne of emissions.

The deduction is a fraction of the good's gross embedded emissions, scaled by how much of the CBAM certificate price was already covered by the price paid at origin:

Art. 9 credit = Embedded emissions × min(1, Carbon price paid ÷ CBAM certificate reference price)

The divisor is the CBAM certificate reference price for the relevant period — not the live/spot EU ETS auction price on any given day. This distinction matters: using the wrong divisor changes the fraction, and therefore the deduction.

Worked example (illustrative figures)

Take a good with 500 tCO₂e of gross embedded emissions, where a genuine carbon price of €18.50/tCO₂e was paid at origin. Using the real Q2 2026 CBAM certificate reference price of €75.28/tCO₂e:

StepCalculationResult
Price ratio€18.50 ÷ €75.280.2457 (24.57%)
Capped at 100%?min(1, 0.2457)No cap needed — 0.2457
Article 9 credit500 tCO₂e × 0.2457122.87 tCO₂e deducted
Remaining obligation (before any benchmark credit)500 − 122.87377.13 tCO₂e

If this good also has an EU ETS free-allocation benchmark, that credit is calculated separately against the same 500 tCO₂e gross figure — not against the 377.13 tCO₂e left after the Article 9 deduction. The two credits are then combined and checked against the per-good floor below.

The per-good floor — no cross-good subsidy

Per CBAM Q&A Q4.32, the combined benchmark credit and Article 9 credit on any single good can never exceed that good's own gross embedded emissions. If adding both credits together would push past 100% of the good's emissions, both are scaled down proportionally until they fit — a large Article 9 credit on one shipment can't offset a good with no credit at all elsewhere in the same declaration.

Frequently asked questions

No — this is a common misreading. Per the draft implementing act on carbon-price deductions, the divisor is the CBAM certificate reference price for the relevant period (the same quarterly-then-weekly published figure used to cost certificates), not the live/spot EU ETS auction price on any given day.

See how CarbonAtlas applies this automatically