UK CBAM: Brexit’s Carbon Cousin Joins the Party
Move over, EU! The UK is rolling out its own CBAM in 2027, and it’s got a few quirks. Let’s decode this post-Brexit climate policy without the jargon (and yes, we’ll throw in a royal corgi reference.
What’s the Deal?
- Sectors on the Chopping Block: Aluminum, cement, fertilizers, hydrogen, iron, and steel. Glass and ceramics get a temporary pass (phew!) 1214.
- No Transition Phase: Unlike the EU’s gentle ramp-up, the UK CBAM hits hard in 2027. Importers pay from Day 1—no training wheels! 12.
Fun Fact
India is one of the top exporters of steel and aluminum to the EU. It is ranked amongst the Top 5 in the CBAM exposure index due to the high emission intensity of manufacturing processes and high percentage of EU exports.
Why This Matters for You:
Whether you’re a steel magnate or a sustainability newbie, CBAM reshapes global trade. Companies are already greening their supply chains to dodge CBAM costs.
Key Differences from EU CBAM
| Feature | EU CBAM | UK CBAM |
|---|---|---|
| Start Date | 2026 (full implementation) | 2027 (no transition) 12 |
| Electricity | Included | Excluded (for now) 12 |
| Default Values | Limited post-2025 | Allowed until 2030 12 |
Fun Fact: The UK’s CBAM threshold jumped from £10k to £50k. Small businesses, rejoice!
What’s at Stake?
- Penalties: Fraudulent evasion = criminal charges. The UK isn’t messing around 12.
- Global Ripple Effect: Australia, Canada, and Taiwan are drafting their own CBAMs. The UK’s move could spark a carbon pricing domino effect 37.
Go To Zero’s Survival Guide
- Data, Data, Data: Partner with suppliers to track emissions and we are always there to streamline your reporting 10.
- Think Beyond 2027: The UK may expand CBAM’s scope. Glass and ceramics, we’re eyeing you 14.