UK CBAM

The UK Carbon Border Adjustment Mechanism (UK CBAM) is a carbon tax on imports of certain high-carbon goods into the United Kingdom, similar to the EU CBAM. It will cover slightly different goods, with the list pending consultation in 2024, and is to be rolled out in 2027. The minded to sectors are aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron and steel. There are some differences regarding the type of emissions covered. Both EU and UK CBAM cover direct (‘Scope 1’) emissions. Regarding indirect (‘Scope 2’) emissions, the EU covers only emissions from electricity consumed during the production process. The UK CBAM proposals cover more indirect emissions, namely from heat, steam and cooling, as well as electricity.