The European Commission is defining how carbon prices paid in non-EU countries will be deducted from CBAM obligations. A recent synthesis report highlights industry debate over which pricing schemes, such as the UK and China ETS, qualify for deductions and how to handle voluntary credits and subsidies. Key technical hurdles include establishing proof of payment, standardizing currency conversion, and accrediting foreign verifiers. The Commission is seeking a balance between strict climate integrity and reducing the administrative burden on importers and SMEs.
