HMRC has published an illustrative carbon border adjustment mechanism (CBAM) rate for cement imports into the UK. The rate is £8.78 per tonne of CO2 equivalent. HMRC says this is not a fixed headline rate. It is based on current carbon pricing data, sector level emissions, and the level of free allowances still given to domestic producers under the UK ETS. The purpose of the illustrative rate is to help businesses see how CBAM will be calculated and what future liabilities might look like. The data behind the figure will likely change before the mechanism starts on 1 January 2027. Once operational, CBAM rates will be updated quarterly using the latest available information. For cement importers, the charge adds a new cost layer that will depend on carbon market movements and UK ETS policy. The full methodology and worked example are available on GOV.UK.
