# Can an EU importer deduct a carbon price paid in Montenegro from CBAM?

Canonical: https://senseible.earth/answers/montenegro-ets-price-cbam-deduction

Possibly. Montenegro runs its own emissions trading system for power and large industry, and CBAM allows a deduction for a carbon price effectively paid in the country of origin. The producer must prove what was paid per tonne, net of free allowances. Check the rules for the year.

## What a deduction needs

- Allowances actually surrendered and paid for.
- A link to the embedded emissions of the goods.
- Free allocation and any compensation subtracted.

## What usually remains

Free allocation can shrink the amount actually paid, so the deduction may be smaller than the headline price suggests.

## Records

Allowance purchase and surrender records by installation and year.

## What Senseible does here

Senseible keeps each site's fuel, power and production records together, so the embedded emissions you send an EU importer trace back to dated documents.

- [Korea ETS deduction](https://senseible.earth/answers/korea-ets-carbon-price-cbam-deduction)
- [Balkans electricity and CBAM](https://senseible.earth/answers/western-balkans-electricity-exports-cbam)
- [Carbon pricing impact](https://senseible.earth/calculators/carbon-pricing-impact)

Sources: [Regulation (EU) 2023/956 (CBAM Regulation), consolidated](https://eur-lex.europa.eu/eli/reg/2023/956/2025-10-20), [European Commission, CBAM definitive regime](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-definitive-regime_en)

Last reviewed 2026-10-21.