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UK CBAM

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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.[1][2] There are some differences regarding the type of emissions covered. Both EU and UK CBAM cover direct (‘Scope 1’) emissions. Regarding indirect (‘Scope 2’) emissions, the EU covers only emissions from electricity consumed during the production process. The UK CBAM proposals cover more indirect emissions, namely from heat, steam and cooling, as well as electricity.[3]

References

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  1. ^ PricewaterhouseCoopers. "UK Government to implement CBAM by 2027". PwC. Retrieved 2024-06-19.
  2. ^ "Factsheet: UK Carbon Border Adjustment Mechanism". GOV.UK. Retrieved 2024-06-19.
  3. ^ "Research Briefing. Carbon Border Adjustment Mechanism". 2024-03-05.