Technopolis Group has been selected to lead a consortium supporting the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) in the development of a methodology for determining annual default carbon prices under the Carbon Border Adjustment Mechanism (CBAM).

Working together with SQ Consult, adelphi and Viegand Maagøe, the consortium will support the Commission in establishing a robust, transparent and practical approach for calculating default carbon prices under the EU’s CBAM legislation that reflect effective carbon prices already paid in third countries. Importers of carbon-intensive goods like steel, aluminium and cement that have already paid a carbon price during the production of the goods need to surrender a correspondingly lower amount of CBAM certificates. The work will cover all jurisdictions operating carbon pricing instruments that may be eligible for recognition under CBAM.

As part of the project, the consortium will update and expand a comprehensive global inventory of carbon pricing instruments, including emissions trading systems and carbon taxes. These instruments will be assessed against relevant eligibility criteria to support the European Commission’s implementation of CBAM.

A major element of the assignment is the collection and validation of carbon pricing data in third countries. Furthermore, the consortium will develop a dedicated CBAM Carbon Price Assessment Tool, to provide a transparent and replicable basis for future updates and assessments.

The project’s outputs will include annual default carbon price estimates for the years 2026 to 2028. These results will contribute to the continued implementation and effectiveness of CBAM, helping to ensure fair treatment of imported goods while supporting the EU’s climate objectives.

In this project, Technopolis and its partners bring together extensive expertise in carbon pricing, emissions trading systems, climate policy and economic analysis to support evidence-based policymaking at the European level.