Opened the debate
The government is introducing a CBAM from 1 January 2027 to ensure that highly traded, carbon-intensive goods imported into the UK face a carbon price comparable to domestic production. Following the Royal Assent of the Finance Act 2026, the government has laid The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026 and The Carbon Border Adjustment Mechanism (Emissions and Verification) Regulations 2026. The government has published illustrative CBAM rates and default emissions values to help importers, businesses, and international partners understand and prepare for their future CBAM liabilities. The official rates for the first quarter of 2027 will be published before the end of the calendar year. Default emissions values will be used where actual emissions data is not available, and a markup of 10% will be applied in all sectors, except fertiliser.