UK: The government’s HM Revenue & Customs department has issued illustrative rates for the forthcoming Carbon Border Adjustment Mechanism (CBAM) system set to start in 2027. Cement will be charged €10.4/tCO2e, based on data available at the time of publication. CBAM rates will be calculated using the latest available data and published at the start of each quarter, the first of which will be published before the end of 2026.
In a worked example the department explained that the average UK emissions trading scheme (ETS) price was €69.1/t in the third quarter of 2026. This was then adjusted by the baseline free allocation percentage for the sector and the free allowance phase-out reduction factor.
