Full definition
In EU ETS, the benchmark is the carbon intensity (tCO2 per tonne of product) of a high-performing European installation in a sector: for example, 1.95 tCO2/t for crude steel or 0.69 for cement clinker. For CBAM, this benchmark calculates the reference free allocation deducted from the charge: the more the imported product’s carbon intensity exceeds the benchmark, the higher the bill. As free allocation disappears (2026-2034), the deducted share of the benchmark decreases, reaching zero in 2034 when all imported emissions are charged.