UK CBAM: Decoding the UK Carbon Border Adjustment

Discover how the UK's Carbon Border Adjustment Mechanism (CBAM) will reshape trade compliance and affect industries worldwide from 2027.

The UK's Carbon Border Adjustment Mechanism (CBAM) set to impact global trade compliance, targeting emissions-heavy industries like steel, iron, and aluminum, from 2027.

The introduction of the UK Carbon Border Adjustment Mechanism (CBAM) marks a significant shift in trade and compliance regulations, specifically targeting industries at risk of carbon leakage. As a customs professional, export compliance officer, or consultant, understanding how this new mechanism will affect customs and trade compliance in the UK is crucial. With CBAM set to roll out in 2027, there are important questions around its impact on imported goods, emissions reporting, and the broader compliance landscape. This blog will explore the key elements of the UK CBAM, focusing on its implementation, the sectors involved, and the obligations for businesses trading with the UK.

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Key Questions Covered in This Blog

1. What is the UK Carbon Border Adjustment Mechanism (CBAM)?

2. Which sectors and products are affected by the UK CBAM?

3. How is the UK CBAM liability calculated?

4. What are the requirements for determining embodied emissions?

5. How do overseas carbon prices affect CBAM rates?

6. What are the registration and payment requirements for liable persons?

7. How does the UK CBAM interact with the UK Emissions Trading Scheme (ETS)?

   
   

Downloads & Resources Available for Premium Plan Subscribers

• CBAM Fact sheet

• CBAM UK Draft Legislation

  
  

“The introduction of the UK CBAM is a step toward a more equitable global carbon pricing system. Businesses will need to adapt quickly to ensure compliance.” Arne Mielken, Managing Director, Customs Manager

Abbreviations Used In This Blog

• CBAM – Carbon Border Adjustment Mechanism

• UK ETS – UK Emissions Trading Scheme

• CPS – Carbon Price Support

• HMRC – Her Majesty’s Revenue and Customs

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What is the UK Carbon Border Adjustment Mechanism (CBAM)?

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