The United Kingdom Carbon Border Adjustment Mechanism (UK CBAM) is a carbon tariff on imports of certain goods produced with high carbon emission into the United Kingdom, similar to the European Union’s CBAM.
It will cover slightly different goods, with the list pending consultation in 2024, and is to be rolled out in 2027.
The sectors within scope are aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron and steel.
Both EU and UK CBAM cover direct (‘Scope 1’) emissions.
The UK CBAM proposals cover more indirect emissions, namely from heat, steam and cooling, as well as electricity.