The UK government has released indicative parameters for its Carbon Border Adjustment Mechanism (CBAM), due to take effect in 2027, according to GMK Center, citing Eurometal. The indicative carbon rate is £9.69 per tonne of CO₂. Its calculation takes account of the free allowances provided to domestic producers through the UK Emissions Trading Scheme (UK ETS).
GMK Center reports that the British approach would be substantially less stringent and less costly for importers of metal products than the European Union’s mechanism. The central distinction is a simpler calculation methodology using sector-wide and global averages. By contrast, the report describes the EU system as requiring emissions tracking against detailed HS product codes, with strict country-specific default values applying where that information is not supplied.
Under the UK approach, default emissions figures are established for individual product categories but averaged across trading partners, rather than differentiated by country of origin. The underlying figures draw on EU data, adjusted to match the composition of British imports excluding supplies from the EU. That methodology is a key part of the difference between the two systems described by GMK Center.
The divergence has prompted concern among European steelmakers that Great Britain and Northern Ireland could become transit routes for avoiding the EU’s higher carbon charges, the outlet reports. The UK and EU are expected to discuss linking their emissions trading schemes and reciprocal CBAM exemptions at a summit in November. London is also considering closer alignment with EU rules from 2029, including a shift towards country-specific emissions parameters.
British industry groups have separately warned that the domestic mechanism could disadvantage manufacturers and hasten the sector’s decline. According to GMK Center, they argue that the Treasury, which is responsible for implementing the levy, has not adequately addressed their concerns. Those objections accompany preparations for the 2027 introduction, despite the comparatively lighter import burden described in the report.