This policy brief’s main intention is to create awareness for the affected stakeholders of the UK CBAM. The brief also touches on the issues faced by firms under the EU CBAM, and shows the similarities of the two mechanisms.
After initial consultation in March 2023, the United Kingdom in December 2023 announced that it will introduce a Carbon Border Adjustment Mechanism (UK CBAM), to come into effect in January 2027. In March 2024, the UK announced consultations for the introduction of the UK CBAM, which will run for 12 weeks from 21 March to 13 June 2024. Consultations can be made online by completing six pages of a survey (found here), commenting on the content of Chapters 5–7 of the UK CBAM consultation text, or can be submitted by email to cbampolicyteam@hmrc.gov.uk. Chapters 5–7 cover product coverage of the UK CBAM, including the issues of adding precursors, methods of calculating the CBAM charge, and the governance and administration components of UK CBAM. This is an opportunity for firms exporting to the UK to enact and elaborate on the issues they face to inform the policy development process of the UK CBAM.
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