UK Government announces adoption of Carbon Border Adjustment Mechanism (UK CBAM)

• The UK Government has confirmed that it will implement a Carbon Border Adjustment Mechanism (CBAM) by 2027.
• The UK CABAM will apply a charge on the carbon emissions embodied in imports from the following sectors: aluminum, cement, ceramics, fertilizers, glass, hydrogen, iron and steel.
• Consultation will take place on the design and mechanics of the UK CBAM in 2024. However, some key details are available now.

Sources

• EY
• Simmons & Simmons
• PwC
• SPGlobal