Factsheet: Carbon border adjustment mechanism (CBAM)
On 1 January 2027, the government will introduce a CBAM to place a carbon price on specified goods imported to the UK from sectors at risk of carbon leakage.
Documents
Details
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This factsheet is a factual document giving an overview of what CBAM is and how it will work.
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It gives details on the confirmed policy positions of the CBAM from the Government Response to the Policy Design Consultation and the draft primary legislation.
Updates to this page
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From 28 November 2025, the following changes have been made to the page: - Delayed inclusion of indirect emissions in scope of CBAM as announced at Budget 2025 - Confirmation of Free Allocation adjustment within CBAM rate and the outcomes of FAR2 - Additional figure for calculating CBAM rate - Updated information for liable person and registration commitments - Additional links and information for the publication of the primary legislation and next steps for the implementation of CBAM
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First published.
Update history
2025-11-28 11:41
From 28 November 2025, the following changes have been made to the page:- Delayed inclusion of indirect emissions in scope of CBAM as announced at Budget 2025- Confirmation of Free Allocation adjustment within CBAM rate and the outcomes of FAR2- Additional figure for calculating CBAM rate- Updated information for liable person and registration commitments- Additional links and information for the publication of the primary legislation and next steps for the implementation of CBAM
2025-04-24 16:45
First published.