- HMRC and HM Treasury launched a consultation on UK carbon border adjustment mechanism (CBAM) from January 2027
- UK established Emissions Trading Scheme post-Brexit to replace EU Emissions Trading System
- EU introduced CBAM to address carbon leakage concern
- UK to implement its own CBAM from 2027 with some differences from EU CBAM
- Differences include transition period, sectoral scope, payment mechanics, and pricing
- UK CBAM would operate as a levy set quarterly by the government
- Importers of CBAM-applicable products need to start considering emissions data requirements.
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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