UK importers of iron, steel, aluminum, cement, fertilizer, and hydrogen now have the calculation rules and default emissions values for the UK Carbon Border Adjustment Mechanism. The CBAM takes effect on January 1, 2027, and requires quarterly reporting and payments aligned with UK Emissions Trading Scheme prices. Using third quarter 2026 ETS prices at GBP 58.15 per ton, the illustrative rates range from GBP 9.79 per ton for aluminum down to GBP 1.45 per ton for fertilizer. The published defaults are not mandatory. Importers can use verified actual emissions if they are lower, which creates an incentive to track real supply chain data. The final rate for each quarter will depend on ETS clearing prices, free allocation baselines, and the phase out schedule, so bills will move over time. Anyone importing covered goods should use the coming months to confirm which goods fall under the mechanism and whether their suppliers can provide verified emissions data.
