UK CBAM: Consultation Outcome
This blog was originally posted on 12th November, 2024. Further regulatory developments may have occurred after publication. To keep up-to-date with the latest compliance news, sign up to our newsletter.
AUTHORED BY ALAN SELLERS, PRINCIPAL PRODUCT COMPLIANCE CONSULTANT, RINA
CBAM Overview
The UK Carbon Border Adjustment Mechanism (CBAM) aims to prevent carbon leakage by imposing a carbon price on imports of carbon-intensive goods. The UK Government has announced that it will introduce a CBAM from 1 January 2027, with no transition period, on imports of certain carbon intensive imported goods.
Products in Scope
Goods from the following sectors were originally proposed, which significantly diverges from the EU CBAM scope:
- Aluminium
- Cement
- Ceramics*
- Fertilizers
- Glass*
- Hydrogen
- Iron and steel
Importantly this list does not include electricity which is included in the EU CBAM scope. However, following feedback already provided, products from the glass and ceramics sectors have been withdrawn* for the moment from the scope of the UK CBAM.
Recommendations for Importers of CBAM Products
Importers impacted by the EU and UK CBAMs should prepare for significant differences between the EU and UK approaches. The EU CBAM, which started its transition phase in 2023, involves certificate-based pricing tied to the EU ETS. The UK CBAM, starting in 2027 without a transition phase, will instead apply a quarterly levy by sector. It will cover additional sectors, such as ceramics and glass, but exclude electricity.
The UK CBAM will require primary and secondary legislation, with HMRC planning to publish draft laws for feedback before they reach Parliament. Until then, no immediate action is needed, but businesses are encouraged to prepare to review and comment on alignment with the EU CBAM to reduce potential compliance costs.
Author
Alan Sellers, Principal Product Compliance Consultant, RINA
Alan has over 16 years of experience in product development and manufacturing and is currently consulting in product compliance. Throughout his career, he has worked across diverse sectors, including oil and gas, household appliances, and outdoor cooking.
As a co-host of the BSI’s The Standards Show podcast, Alan helped bring the often overlooked world of standardization into focus, connecting it to everyday life by sharing the stories behind the standards.
In addition to his consulting work, Alan serves as the chair of the UK technical committee responsible for developing safety standards for household appliances. He is also a nominated expert in several international working groups supporting this effort.
With his deep expertise in conformity assessment, product development, and international standardization, Alan offers a unique perspective, skillfully guiding innovative and complex products through the evolving regulatory landscape to gain access to markets worldwide.
He can be contacted at: alan.sellers@rina.org
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