- UK government releases draft legislation for Carbon Border Adjustment Mechanism (CBAM) for consultation
- CBAM to start on 1 January 2027
- Applies carbon price to imports like aluminium, cement, fertilisers, hydrogen, iron, and steel
- Aims to address carbon leakage and align with UK Emissions Trading System
- Importers to pay levy based on emissions and UK ETS price, calculated quarterly
- Businesses importing over 50000 pounds of CBAM goods annually must register with HMRC
- Exemptions for UK-origin goods and non-business imports included
- Secondary legislation and further guidance to be provided
- CBAM industry working group to be launched
- Businesses advised to review supply chains, emissions data, and compliance obligations now
- Early engagement recommended to minimize disruption
Source: rpclegal.com
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.
