UK Carbon Border Adjustment Mechanism

Applies to

Importers into Great Britain of CBAM-scope goods: aluminium, cement, fertilisers, hydrogen, iron and steel.

Key points

• Scope at launch: aluminium, cement, fertilisers, hydrogen, iron, steel (ceramics and glass deferred).
• Quarterly accounting periods; first return due 2027.
• De-minimis threshold £50,000 of annual imports.
• Embedded emissions cover Scope 1 + selected Scope 2 / precursor materials.

Applicability triggers

• Indian exporter of steel, aluminium, cement, fertilisers, hydrogen or iron to GB above the de-minimis.
• Indian producer claiming a verified Indian carbon price (CCTS) to offset UK CBAM liability.

Practitioner questions

• How does UK CBAM treat CCTS-priced Indian carbon?
• Does the UK CBAM liability stack with EU CBAM for re-exported Indian goods?

Sources

• HMRC — UK CBAM consultation response