UK CBAM: the second carbon border, from 2027

From January 2027 the UK applies its own carbon border adjustment to imported iron & steel, aluminium, cement, fertilizers and hydrogen — a tax-style levy rather than certificates, priced off the UK ETS.

Calculate your carbon bill →CBAM guide

UK vs EU CBAM

	EU CBAM	UK CBAM
Start	2026 (definitive)	2027
Mechanism	certificates surrendered by importer	levy (tax-style) on importer
Sectors	+ electricity	no electricity; ceramics/glass considered then deferred
Price basis	EU ETS weekly auctions (€75.36 Q1 2026)	UK ETS reference price
Free-allocation mirror	phase-in 2.5%→100% to 2034	tracks UK free-allocation decisions

The linkage twist

The 2025-announced UK–EU ETS linkage is designed to exempt each other's goods from both CBAMs once live. Practical read for exporters: treat the UK and EU borders as one converging carbon frontier — verified embedded-emissions data satisfies both, and the same efficiency tonne saves on both sides.

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Every tonne you stop emitting is a tonne you don't have to report: cutting heat loss is a measurable, auditable Scope 1 reduction that flows straight into EU ETS, CBAM and your ESG / CSRD disclosures — not an offset, an actual emission cut.

Who should prepare

Türkiye, China, India, the Gulf and US exporters of steel/aluminium to Britain — the same cast as EU CBAM. UK-bound volumes priced off ≈£55 UKA today; budget the levy with our calculator using the UK market option as proxy.

FAQ

Questions

When does UK CBAM start?

1 January 2027, per HM Treasury's confirmed design (levy-style, priced off the UK ETS).

Which products does UK CBAM cover?

Iron & steel, aluminium, cement, fertilizers and hydrogen. Unlike the EU version, imported electricity is not covered; glass and ceramics were considered and deferred.

How is UK CBAM different from EU CBAM?

Mechanism: a tax-style levy rather than purchased certificates; price referenced to the UK ETS; and the UK–EU linkage deal is expected to exempt each other's goods once in force.

Does a domestic carbon price reduce UK CBAM?

Yes — like the EU system, carbon prices effectively paid in the origin country are credited against the levy.

How this page is built: heat-loss figures follow ASTM C680 / ISO 12241 (the method behind our public calculators); facility emissions from Climate TRACE & EU ETS verified data across 30,000+ industrial sites; the 2026–2034 schedule is Regulation (EU) 2023/956, not a forecast. Published by Inzonex Research. Spotted an error? Tell us — we correct on evidence.