Can a Mexican steel or cement exporter deduct Mexico's carbon tax under CBAM?
Possibly, for the part actually paid on fuels behind the exported goods. Mexico's federal carbon tax applies to fossil fuels but not to natural gas, so a gas based mill has little to claim. Some states also tax emissions. The EU declarant needs proof of payment and an independent certification.
What can count
- Federal carbon tax paid on fuels such as coal, petroleum coke and fuel oil used in production.
- State level emission taxes paid by the installation.
- Not the pilot emissions trading system, which imposed no cost.
What reduces it
Any rebate, exemption or credit against the tax, and the share of fuel that went into goods not exported to the EU.
Evidence
- Fuel invoices showing the tax.
- Payment proof for state taxes.
- A certification of the amount attributable to the exported goods.
What Senseible does here
Senseible reads coal, coke, gas and electricity invoices and production records into a dated, fingerprinted record per site, so the direct emissions behind each tonne can be traced to the documents. Emissions factors outside India are entered from the official source and labelled.
Sources: CBAM Regulation (EU) 2023/956, consolidated, European Commission, CBAM legislation and guidance, UNFCCC, national inventory and NDC documents
Last reviewed 2026-10-21.