Due to the UK's exit from the European Union (EU), the EU and UK are following different timelines with regard to the implementation of CBAM regulations. Therefore, UK exporters should be aware of the EU’s CBAM requirements, especially when exporting carbon-intensive goods, as the EU’s regulations are designed to align import carbon costs with those of domestic production to support global climate goals.
The EU's Carbon Border Adjustment Mechanism (CBAM) is a system to impose a carbon price on imported carbon-intensive goods, aligning import prices with those of EU-produced goods and promoting cleaner production abroad. CBAM aims to support the EU’s climate goals by ensuring imports don’t undercut domestic carbon pricing. Compliant with WTO rules, CBAM's full implementation is scheduled for 2026, following a transitional phase from 2023 to 2025. This phase aligns with the gradual removal of free allowances in the EU Emissions Trading System (ETS) to aid EU industry decarbonisation.
More information on the affected product groups, as well as the implementation and transitional phases can be found via the link below.
