CASE STUDY
CBAM Cost Calculation for Turkish Exporters: A Worked Case Study
Numbers are often easier to reason about than concepts. In this guide we walk through a step-by-step CBAM cost calculation example based on a hypothetical aluminium exporter — for CBAM's overall framework, see our pillar guide.
This example is entirely hypothetical; it isn't based on a real company or real data. Its purpose is to illustrate the calculation logic through a concrete example.
The Scenario
Our scenario involves a mid-sized manufacturer exporting 500 tonnes of aluminium profile to the EU annually. The company is just starting its CBAM reporting process and wants to evaluate the cost gap between default and actual values.
Step 1: Determining Product Scope and Emissions Sources
In the first step, the company confirms that the aluminium profiles it exports fall within CBAM scope, and that both direct (electrolysis) and indirect (electricity) emissions sources need to be included in the calculation.
Step 2: Calculating with the Default Value
Since it doesn't yet have verified data, the company first runs a calculation using the EU-set default value. In our hypothetical scenario, this figure is taken as 8.5 tCO₂e per tonne. For 500 tonnes, total embedded emissions come to 4,250 tCO₂e.
Step 3: Calculating with the Actual Value (After Verification)
The company works with an accredited verifier to verify its own production data. The verified actual value, in our hypothetical scenario, comes out to 6.2 tCO₂e per tonne. For the same 500 tonnes, total embedded emissions come to 3,100 tCO₂e.
Step 4: Comparing Certificate Cost
The 1,150 tCO₂e gap between the two scenarios translates directly into certificate demand. If we calculate at a hypothetical €80 per certificate (this is purely an illustrative figure — see our certificate prices guide for current pricing), the difference corresponds to roughly €92,000.
That's a concrete illustration of how the investment in verification can pay for itself within a single reporting period.
The Takeaway
This example is, of course, a simplified scenario — real calculations vary by product complexity, supply chain structure, and verification scope. But the underlying logic holds: verified actual data delivers a cost advantage in most cases.
We cover why actual and default values differ in our comparison guide, and the aluminium-specific calculation details in our SEE calculation guide.
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