The UK Treasury has announced the need for a UK Carbon Border Adjustment Mechanism (CBAM) group to gather insights from international partners on the UK CBAM and provide updates on 11 February 2025.
The Autumn Budget 2024 confirmed that the government will implement a UK carbon border adjustment mechanism (CBAM) from 1 January 2027. This was set out in the government response to the UK CBAM consultation.
The Carbon Border Adjustment Mechanism (CBAM) ensures a fair price on carbon emissions associated with the production of carbon-intensive goods entering the EU. It also aims to promote cleaner industrial practices in non-EU countries.
By verifying that a price has been paid for the embedded carbon emissions in certain imported goods, CBAM ensures that the carbon cost of imports aligns with that of domestic production, preventing any undermining of the EU’s climate goals. The mechanism is designed to comply with WTO rules.
Earlier, the UK autumn budget announcements were delivered on 30 October 2024.
