How is the free allocation adjustment worked out when I use actual CBAM data?
For each process, specific free allocation equals the CBAM factor times the cross-sectoral correction factor times the process benchmark. A simple good takes that figure. A complex good adds, for each bought or own precursor, its mass per tonne times that precursor's own figure. EU-made precursors count as zero.
Step 1: the process figure
SFA = CBAM factor x CSCF x BM*. The CBAM factor is 97.5% for 2026, 95% for 2027 and 90% for 2028. BM* is the process-related benchmark from column A of the Free Allocation Adjustment Act, the same for every country. The year is the year the good was produced.
Step 2: simple good
No precursors, so the specific embedded free allocation (SEFA) equals the process figure.
Step 3: complex good
SEFA = process figure + sum of (mass of precursor i per tonne of good x SEFA of precursor i). Mass per tonne is the total precursor mass used in the process divided by the tonnes of good made in it. Repeat down the chain until a precursor has no precursors.
Which precursor values
- Own precursor or a supplier's verified report: use the actual value.
- No verification report: use the default benchmark from column B, for the production year of your good.
- Precursor made in the EU, or in Iceland, Liechtenstein, Norway, Switzerland or the listed territories: zero, though the quantity must still be reported.
About the correction factor
The guidance table shows 1.0 for every year and calls those values preliminary. Its footnote says the 2026 to 2030 values are in Implementing Decision (EU) 2026/1862, so check that decision for the final figure.
Who uses the result
The importer deducts SEFA times the tonnes imported from the embedded emissions to get the CBAM obligation. As operator you supply SEFA in the verified emissions report.
What Senseible does here
Senseible reads your production and purchase documents into quantities by product, which feeds the mass figures. The benchmark look-up and the calculation are done in the Commission's template.
Last reviewed 2026-10-25.