UK announces CBAM rules that will come into force in 2027

The UK will impose a carbon levy on imported products such as hydrogen, fertilisers and steel from 2027, ensuring products from overseas face a comparable price to UK-produced alternatives.

Under the rules, highly traded, carbon intensive products from overseas including iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement will face comparable carbon pricing to those domestically produced.

Slated to tackle ‘carbon leakage’, the new carbon border adjustment mechanism (CBAM) rules are intended to reduce the risk for production and associated emissions being displaces to other countries with no for lower carbon prices.

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