# Can a Mexican steel or cement exporter deduct Mexico's carbon tax under CBAM?

Canonical: https://senseible.earth/answers/mexico-carbon-tax-cbam-deduction

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.

- [South Africa carbon tax deduction](https://senseible.earth/answers/south-africa-carbon-tax-cbam-deduction-steel)
- [Monterrey gas DRI steel](https://senseible.earth/answers/monterrey-gas-dri-steel-cbam-figure)
- [Mexico grid factor](https://senseible.earth/answers/mexico-grid-emission-factor-for-suppliers)

Sources: [CBAM Regulation (EU) 2023/956, consolidated](https://eur-lex.europa.eu/eli/reg/2023/956/2025-10-20), [European Commission, CBAM legislation and guidance](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-legislation-and-guidance_en), [UNFCCC, national inventory and NDC documents](https://unfccc.int)

Last reviewed 2026-10-21.