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Policy Paper Published 26 Nov 2025 HM Revenue & Customs ↗ View on GOV.UK

Introduction of Carbon Border Adjustment Mechanism

This tax information and impact note is about the new Carbon Border Adjustment Mechanism (CBAM) tax.

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Carbon Border Adjustment Mechanism (CBAM) will make sure that highly traded, carbon intensive goods imported into the UK face a comparable carbon price to that paid by manufacturers in the UK.

This will apply from 1 January 2027 to goods from the following industrial sectors:

  • aluminium
  • cement
  • fertiliser
  • hydrogen
  • iron and steel