Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what her planned timetable is for publishing the (a) scope, (b) methodology, (c) sectoral coverage and (d) other details of the UK Carbon Border Adjustment Mechanism.

The Carbon Border Adjustment Mechanism (CBAM) will be introduced from 1 January 2027. CBAM is a new tax which will ensure that highly traded, carbon intensive goods which are imported into the UK face a comparable carbon price to what is paid by manufacturers producing the same goods in the UK.

CBAM will apply to goods from the following industrial sectors: aluminium, cement, fertiliser, hydrogen, iron and steel sectors. The UK CBAM will only apply if the total value of CBAM imports in a rolling 12-month period meets or exceeds £50,000.

Primary legislation for CBAM was introduced in the Finance Act 2026. Draft secondary legislation has been released in two stages and will be laid later in the year.

CBAM is designed to ensure that UK decarbonisation policy encourages a true reduction in global emissions by mitigating carbon leakage. Further details can be found in the policy summary: Carbon border adjustment mechanism (CBAM): Policy Summary - GOV.UK

Both the UK and EU CBAMs introduce a carbon price on imported goods with an aim to mitigate the risk of carbon leakage. The government recognises that alignment with existing regimes can reduce administrative burdens and where possible, have sought to align with and build upon existing methodologies for the purpose of monitoring, reporting and verifying emissions. However, the UK CBAM has been designed in response to the specific carbon leakage risks facing UK producers.