5 terms
Concept library
Every term we've defined, in plain English, with the explainers that use it.
C
- Carbon leakage
- When production moves to countries with weaker climate rules, so emissions move rather than fall.
- Carbon price relief
- A reduction in the charge for carbon prices already paid in the country where the goods were made.
Practitioner note
Embodied emissions × effective carbon price, capped at the CBAM liability.
D
- Default value
- A standard emissions figure set by the government for use when real factory data is not available.
Practitioner note
Single product-level, trade-weighted values excluding EU data, with a 10% markup except fertiliser, for 2027–2028.
E
- Embodied emissions
- The greenhouse gases released when a product was made.
Practitioner note
For UK CBAM, direct emissions per tonne of good, calculated by default value or the eight-step actual method in SI 2026/995 reg 5.
F
- Free allowances
- Emissions permits given to some UK factories at no cost, to protect them from foreign competition.
Practitioner note
The UK CBAM rate is scaled by the sector's baseline free allocation percentage and the phase-out reduction factor (97.5% in 2027).