The UK government has decided that the UK CBAM will only apply to the emissions embodied in imports of specified goods in the aluminium; cement; fertilisers; hydrogen; and iron & steel sectors from 1 January 2027.

However, the government will keep the list of products in scope of the UK CBAM under review post-2027 to ensure that the product level scope of the UK CBAM can be updated to reflect the evolving carbon leakage context. The government acknowledges the requests for further products to be included in the current UK CBAM sectors, including derivative and downstream products. On balance, the inclusion of such products within scope of the UK CBAM from 2027 would add disproportionate burdens and is not currently feasible.

Products from the glass and ceramic sectors that also give rise to a risk of carbon leakage will be considered for future inclusion but will not be in scope of the UK CBAM from 2027.

Source: GOV.UK

• Why is the UK introducing Carbon Border Adjustment Mechanism (CBAM)?
• Which sectors will a UK CBAM initially apply to?
• Commodity codes within scope of UK CBAM?
• What is Direct emissions and Indirect emissions?