In the Budget 2025, the UK government announced that a Carbon Border Adjustment Mechanism (CBAM) will start on 1 January 2027, with first returns due in May 2028. The objective of CBAM is to ensure that highly traded, carbon-intensive products imported from abroad are subject to a carbon price comparable to that imposed on UK manufacturers. This approach aims to guarantee that UK decarbonisation efforts result in an actual decrease in global emissions, rather than merely shifting carbon emissions to other countries.
Authors:
Abhay Srivastava, Head of ESG
Email: abhay.srivastava@weightmans.com
Simon Colvin, Partner
Email: Simon.Colvin@Weightmans.com