Today, the Government Response to consultation on the ‘Introduction of a UK carbon border adjustment mechanism (CBAM) ’was published, as part of Autumn Budget 2024.
You can access the Government Response using this link: Government Response
The Government Response confirms that:
- A UK CBAM will be introduced on 1 January 2027. It will place a carbon price on goods that are at risk of carbon leakage imported to the UK from the aluminium, cement, fertiliser, hydrogen, iron and steel sectors. It will ensure that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.
- Products from the glass and ceramics sectors will not be in scope of the UK CBAM from 2027, as previously proposed, to allow government and industry time to address feasibility concerns raised throughout the consultation process. The government will continue to work with industry to address these concerns before considering their potential inclusion at a later date.
- The value of the minimum registration threshold will be increased from £10,000 to £50,000 so only businesses importing £50,000 or more of CBAM goods over a 12-month period will need to comply with the UK CBAM.
Read more about how to prepare for the UK CBAM from ALFED here: https://alfed.org.uk/preparing-for-the-uk-carbon-border-adjustment-mechanism-cbam/
