UK CBAM default carbon values and levy rates published for importers of steel, cement, and more

The UK government has published default carbon intensity values and methodologies for its forthcoming carbon border adjustment mechanism. Importers of aluminium, cement, fertiliser, hydrogen, iron, and steel will need to use these figures to calculate the levy on embedded emissions. The move gives businesses a clearer view of how the border tax will work in practice. The chosen default values matter because they determine the starting point for importers who cannot prove the actual emissions intensity of their supply chain. Lower defaults reduce the levy burden, while higher ones strengthen the incentive to switch to lower-carbon production. Anyone trading these goods into the UK should review the methodology before the scheme goes live. This is part of a broader shift toward carbon border measures in major economies. The UK approach will be watched closely by importers, exporters, and carbon market participants.