Great Britain confirmed that from January 1, 2027, it will introduce a mechanism for adjusting carbon borders (CBAM), aimed at combating carbon leakage and supporting its target by pure zero emissions by 2050. This step is consistent with the UK obligation to reduce emissions by 68 percent by 2030 and by 81 percent by 2035 compared to 1990 levels.
Why do you need CBAM
The quotas trading scheme for emissions in the UK (UK ETS) reduces quotas by 45 percent from 2023 to 2027, increasing the prices of carbon. Free manuals are guaranteed until 2026, and their future is under consideration. Although this accelerates the decarbonization, it also increases the risk of production transfer abroad, where climatic rules are weaker, a phenomenon known as a carbon leak.
to eliminate this risk CBAM will cover imports with a high level of emissions, such Iron and steel. Importers will pay the price of carbon emissions based on built -in emissions, either through verified data, or through the default values established by the government. The tax rate will also reflect the internal price of carbon, which would be carried if the goods were produced in the UK. The first tax returns and payments should be submitted in May 2028.
Scope and coverage
CBAM will be applied to specific goods identified. UK tariff commodity codes in accordance with the combined nomenclature (CN) associated with the harmonized system (HS). While the materials located above by the flow, such as aluminum sheets and
