UK CBAM:

being defined in 2024,
coming up in 2027

The UK CBAM

The UK CBAM

  • UK CBAM, same as in the EU, is meant to stop carbon leakage

    The UK's UK ETS, a key policy tool for achieving net-zero, could lead to carbon leakage if other countries don't implement similar carbon pricing mechanisms, creating an uneven playing field for businesses.

  • UK CBAM implementation stages still unclear

    • The design and delivery of the CBAM is subject to consultation in 2024, including the precise list of products in scope.
    • The government will implement a UK CBAM by 2027.
  • Eliminate disparity between prices paid for CO2 emissions in the UK and non-UK territories

    Both the UK CBAM and EU CBAM will apply a carbon price to imported carbon-intensive goods, with the price defined by the relevant ETS. They also both calibrate implementation with a phasing-out of free allowances under the respective ETS.

  • UK CBAM products coverage slightly different from the EU CBAM

    The UK CBAM will place a carbon price on some of the most emissions intensive industrial goods imported to the UK:
    1. Cement
    2. Iron and steel
    3. Aluminium
    4. Fertilisers
    5. Electricity
    6. Hydrogen
    7. Ceramics
    8. Glass
  • Allowances and Certificates concept

    • There will be no purchase or trading of emission certificates
Key questions
Key questions
Key documents
Key documents
  1. Introduction of a UK CBAM from January 2027
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