But can you take us a bit deeper into the details and explain how the CBAM cost is actually calculated?

Sure.

So looking at the cost of CBAM, this is a formula that has essentially four building blocks.

First, and this is one of the most important, you have the embedded emissions of the imported goods.

So these are the tons of CO2 equivalent generated when producing one ton of that product.

It's calculated according to the EU methodology and covers direct emissions from the production process.

And for some sectors, for some goods, it includes also indirect emissions from the electricity consumed.

So is that right? Is that what you want to talk about in the next episode? Yes.

Maybe it would be interesting to know what's new in the ETS, the emission trading system, that the listeners of the podcast should be aware about.

Yeah, of course.

And here we will start with ETS updates because as we previously said, ETS and CBAM, this is the two sides of the same coin.

And so the most important update on the ETS side is the phase out of those three allowances for the CBAM sectors.

It means that starting at least right now in 2026, free allowances for sectors like cement, iron, steel, aluminum, fertilizers, hydrogen, those CBAM sectors basically, will begin to decrease.

and they will be fully phased out by 2034.

So no more free allocation, no more free emissions for those sectors.

So if you were in the audience of this podcast, what would you recommend businesses or the audience to be doing right now? Maybe, or that's a question for you, I think.