UK Carbon Border Adjustment Mechanism: How Will It Work?

UK Carbon Border Adjustment Mechanism

In February, we reported on the Department of Energy Security and Net Zero's confirmation that a UK Carbon Border Adjustment Mechanism (CBAM) would be bought into force by 2027. See our review of the UK CBAM and comparison with the EU CBAM here.

HM Treasury and HM Revenue and Customs (HMRC) have recently published a consultation on the introduction of a CBAM on imports into the UK of certain carbon intensive goods (the Consultation). The Consultation seeks views on the design, implementation and administration of the CBAM to ensure that its implementation meets the government's environmental and other objectives, while not placing disproportionate burdens on business.