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UK Carbon Border Adjustment Mechanism Policy

The UK is implementing a Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage by placing a carbon price on imports of carbon-intensive goods, coordinated across DEFRA, HM Treasury, and HMRC. The mechanism will interact with the UK Emissions Trading Scheme and support domestic decarbonisation in trade-exposed sectors. The policy is active with draft regulations published and focus on clarifying how CBAM operates alongside existing carbon pricing and free allocation policies.


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30 Oct 2024 | Consultation outcome HM Revenue & Customs HM Treasury linked

Consultation on the introduction of a UK carbon border adjustment mechanism — outcome published

This consultation seeks views on proposals for the design and administration of the UK carbon border adjustment mechanism (CBAM) from 1 January 2027.

13 Jun 2024 | Consultation outcome HM Revenue & Customs HM Treasury linked

Consultation on the introduction of a UK carbon border adjustment mechanism — consultation closed

This consultation seeks views on proposals for the design and administration of the UK carbon border adjustment mechanism (CBAM) from 1 January 2027.

21 Mar 2024 | Consultation outcome HM Revenue & Customs HM Treasury linked

Consultation on the introduction of a UK carbon border adjustment mechanism — consultation opened

This consultation seeks views on proposals for the design and administration of the UK carbon border adjustment mechanism (CBAM) from 1 January 2027.