- UK is implementing a Carbon Border Adjustment Mechanism (CBAM) to place identical carbon prices on imported products as domestically manufactured products
- Glass and ceramic products will not be included in the UK CBAM from January 1, 2027 due to lower emissions intensity and complexity of accounting for emissions
- Sectoral coverage of UK CBAM from 2027 will include imported aluminium, cement, fertiliser, hydrogen, iron, and steel products
- UK CBAM will price direct and indirect emissions to accurately price embodied emissions in imported products
- Importers can use actual emissions data or apply government’s standardised default values for calculating embedded emissions
- UK CBAM Rate will reflect the effective carbon price in the UK as determined by the UK ETS.
Source: europeantax.blog
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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