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UK to Introduce Carbon Border Adjustment Mechanism (CBAM) by 2027

  • UK government published a consultation on carbon leakage and decarbonisation
  • Potential policy measures included the introduction of a UK carbon border adjustment mechanism (CBAM)
  • Government will implement a CBAM by 2027
  • Certain goods imported into the UK will have to pay a levy to ensure a comparable carbon price
  • CBAM will apply to carbon-intensive goods in sectors such as iron, steel, aluminium, etc.
  • Importers will be responsible for meeting CBAM obligations
  • Further consultation on CBAM design and delivery in 2024
  • UK CBAM will interact with the UK emissions trading scheme (ETS)
  • Consultations on proposed changes to the UK ETS have been launched recently.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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