Consultation outcome

Consultation on the introduction of a UK carbon border adjustment mechanism

From:: HM Treasury and HM Revenue & Customs
Published: 21 March 2024
Last updated: 30 October 2024 — See all updates

Read the full outcome

Introduction of a UK Carbon Border Adjustment Mechanism from January 2027: Government response to the policy design consultation

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Detail of outcome

On 21 March 2024, the previous government published a consultation entitled ‘Introduction of a UK carbon border adjustment mechanism from January 2027’. The consultation ran for 12 weeks and received over 340 responses from a variety of domestic and international stakeholders, including from UK and overseas industry, trade associations, importers, think tanks and academics. The consultation set out proposals for the design and administration of the UK carbon border adjustment mechanism (CBAM). A full summary of responses and the government response is available here.

The government response confirms that a UK CBAM will be introduced on 1 January 2027. The UK CBAM will place a carbon price on some of the most emissions intensive industrial goods imported to the UK from the aluminium, cement, fertiliser, hydrogen and iron & steel sectors that are at risk of carbon leakage. Products from the glass and ceramics sectors will not be in scope of the UK CBAM from 2027. The sectoral scope of the UK CBAM will be kept under review beyond 2027.

Original consultation

Consultation description

Following the consultation, “Addressing carbon leakage risk to support decarbonisation”, the government announced that it would introduce a CBAM from 1 January 2027 on imports of certain carbon intensive imported goods from the following sectors: aluminium; cement; ceramics; fertilisers; glass; hydrogen; and iron and steel.

This consultation, being undertaken jointly by His Majesty’s Revenue & Customs (HMRC) and His Majesty’s Treasury (HMT), sets out proposals for the design and administration of the mechanism.

The government invites views from interested parties, including importers and their agents, other businesses, individuals, tax advisers, trade and professional bodies and other interested parties, including those overseas.

Responses to the response form will be shared between HMRC and HMT.

If you are interested in participating in a roundtable discussion or want to be added to our CBAM mailing list, please contact [email protected].

Responses should be provided to the response form (preferred) or by email to [email protected].

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