Hydrogen is one of the youngest CBAM sectors, and one expected to grow significantly. In this guide, we cover what the platform's "Grey Hydrogen" coefficient means, the hydrogen color classification system, and a verified worked example.
For how CBAM works in general, the transition timeline, and the certificate cost formula, we recommend first reading our general CBAM guide — here we focus directly on the coefficient and example specific to the Hydrogen sector.
CBAM covers a single item in the Hydrogen sector (CN code 2804):
| Item | ton CO2e / ton |
|---|---|
| Grey Hydrogen | 9.2 |
Source: the CBAM section of our Bibliography page (full list of all 25 products).
Hydrogen is classified by color codes based on its production method: Grey Hydrogen is produced via steam reforming of natural gas, and the CO2 released in the process is emitted directly into the atmosphere — this is why it's the method CBAM covers, since it accounts for the vast majority of today's industrial hydrogen production. The coefficient (9.2) is far higher than iron-steel or cement because of the amount of natural gas required per unit of hydrogen produced and the process's relatively low carbon conversion efficiency. For comparison: "Green Hydrogen," produced via water electrolysis using renewable electricity, has a theoretical embedded emission close to zero under CBAM — but the platform currently only includes the Grey Hydrogen coefficient, since it remains dominant in the sector.
For a company exporting 30 tons of Grey Hydrogen (coefficient: 9.2 ton CO2e/ton):
Embedded Emissions = 30 tons × 9.2 = 276 ton CO2e
Cost = 30 × 9.2 × €72.5/ton (EU ETS price) × 0.10 (2026 phase-out rate) =
€2,001.00
At the same export volume, this figure will rise to roughly 2.5 times that amount in 2027 (at a 25% rate), and 10 times that amount by 2032 (at a 100% rate) — meaning the economic incentive to transition to low-carbon (green/blue) hydrogen production will grow steadily stronger for exporters.
Calculate your Hydrogen export CBAM cost in advance
Forecast your certificate cost with the CBAM simulation module in our Enterprise plan.
Explore the CBAM Module