CBAM carbon tax takes effect January 2027, but the supplier data that sets your bill is gathered in 2026.Check your exposure →
Carbon Border Adjustment Mechanism

A carbon tax on imported materials starts January 2027.

UK importers of steel, aluminium, cement, fertiliser and hydrogen will pay a carbon price on the emissions embedded in those goods. The bill depends almost entirely on the data you gather before the taxed year begins. We help you understand your exposure, and minimise it.

1 Jan 2027
Takes effect

CBAM begins. The first return, covering all of 2027, is due 31 May 2028.

£50,000
Scope threshold

Total annual import value of CBAM goods over 12 months that brings you into scope.

5 sectors
In scope

Iron & steel, aluminium, cement, fertiliser and hydrogen, as finished material or feedstock.

What it is

A carbon price at the UK border.

CBAM charges the emissions embedded in imported materials, set to match what UK producers already pay under the UK ETS. It is administered as a tax by HMRC.

01

A carbon price at the border

Charged on the embedded emissions of imported steel, aluminium, cement, fertiliser and hydrogen, to match the UK ETS. Scrap is excluded; indirect (electricity) emissions are delayed to 2029.

02

It hits importers, and the manufacturers who use the material

Any business importing £50,000+ of in-scope goods over 12 months is directly liable. But the cost reaches every manufacturer using imported steel or aluminium as an input. It's a competitiveness issue, not just compliance.

03

Modest now, then it climbs

The charge is comparatively small at launch but rises materially through the early 2030s as UK ETS free allowances phase out. Returns are annual for 2027, then quarterly from 2028.

Aerial view of a river running through dense forest
Why CBAM exists

A carbon price, doing its job.

CBAM puts the same carbon cost on imports that UK producers already pay, so cleaner production is no longer undercut by higher-emission goods made abroad. For importers that means the emissions behind your materials now carry a price, and proving a lower number is worth real money.

Are you exposed?

Five sectors, by commodity code.

CBAM applies to specified commodity codes within five sectors. If you import any of the following, as finished material or as feedstock, you are likely in scope.

Iron & steel
Flat-rolled, long products, tube, wire, fasteners
Aluminium
Unwrought, extrusions, downstream products
Cement & clinker
Fertilisers
Hydrogen
Excluded: scrap (by commodity code), and, until 2029, indirect electricity emissions. Scope is expected to expand to downstream products over time, so a "not in scope today" answer is worth re-checking as the regime develops.
The single biggest lever

One number decides most of your bill: actual vs. default.

When you can't prove your suppliers' emissions, HMRC applies a default value, and at launch the UK uses a single default per product, the same regardless of where the goods came from. It is set high on purpose.

The only way to pay less than the default is verified actual emissions data from your suppliers. Most importers will fall back on the default and overpay, and a clean, low-carbon producer can be penalised hardest of all.

Default value
The fallback when you can't evidence emissions. High by design, the costly path most importers land on.
Verified actual data
Sourced from your suppliers, meeting the UK methodology. The route to paying what your goods actually warrant.
Exposure check · 2 minutes

Are you in scope, and what drives your bill?

A free scoping check. It tells you whether you're likely in scope, the scale of your exposure, and the levers that decide what you'll pay. No cost, no obligation.

CBAM exposure check

Five quick questions. We'll show your result on screen, no £ figure yet (UK rates publish Autumn 2026), but everything that decides it.

1 · Which materials do you import? Select all that apply.
Steel Aluminium Cement Fertiliser Hydrogen Not sure None of these
2 · Approximate annual value of those imports Total across all CBAM goods over 12 months.
Under £50k £50k–250k £250k–1m £1m–5m Over £5m
3 · How do you use the material? Feedstock to manufacture, or imported as finished product.
We manufacture with it We distribute or resell it Both
4 · Main countries you import from (optional) Select all that apply.
EU China Türkiye India Other Not sure
5 · Do you currently get emissions data from your suppliers?
Yes No Not sure
Please answer questions 1, 2, 3 and 5 to see your result.
Scope status
Exposure scale
Based on your import volume, not a liability figure.

What will drive your bill

  • The embedded emissions of your specific goods and their commodity codes.
  • Whether you use default values or verified actual data, the single biggest lever on what you pay.
  • Your origin countries, a carbon price paid there can be deductible against the UK charge.
  • The rate, which rises through the early 2030s as UK ETS free allowances phase out.

Your CBAM timeline

Jan 2027
In scope, the taxed period begins
31 May 2028
First return & payment (for all of 2027)
During 2026
The supplier data that sets your bill is gathered

We'll run your real number the moment UK values land.

A precise £ estimate needs the UK default values and rate, published Autumn 2026. Leave your details and we'll model your specific exposure as soon as they're live, and we can review your exposure and supplier-data readiness now, at no cost.

We use your details only to respond to your enquiry. See our Privacy Policy.

Indicative scoping only, not tax advice or a liability calculation. The £50,000 threshold is the total across all CBAM goods over 12 months. A precise assessment uses your own customs and supplier data.

Free tool · Current scope list

UK CBAM commodity-code scope checker

Enter a 6-, 8- or 10-digit code to see whether it is included, explicitly excluded or outside the current schedule, with the matched rule shown.

Check a code →
Free download · Excel

The UK CBAM accrual forecaster

Import value and product mix in, a quarterly accrual profile out, with the free-allocation ramp to 2030 and a default-versus-actual data toggle. Built for finance directors who want the shape of the number before HMRC publishes the rate.

Get the forecaster →
How we work

From exposure to ongoing compliance

We can act as your CBAM agent: you hold registration and liability, we do the calculation and filing.

1

Exposure assessment

Which imports are in scope, indicative liability, and where cost lands as the regime ramps. No obligation.

2

Data & supplier engagement

Securing verified actual emissions data from suppliers, the only route below the default value.

3

Sourcing review

Which origins carry a deductible carbon price, which suppliers can provide verified data, and whether your mix should shift.

4

Return preparation

We act as your CBAM agent, you hold registration and liability, we do the calculation and filing.

5

Ongoing compliance

Annual then quarterly returns, supplier-data refresh, and monitoring as scope expands downstream.

Why a markets adviser, not a generalist

The hard part of CBAM is the supply chain.

The difficulty in CBAM is tracing embedded emissions through a steel or aluminium supply chain, where the material came from, which precursors it carries, and what that does to the number. That is exactly what a markets-native adviser can reason about and a generalist energy broker cannot.

Get in touch

Understand your CBAM exposure.

If you import steel, aluminium, cement, fertiliser or hydrogen, we can tell you whether you're in scope, give you an indicative sense of your 2027 exposure, and show you where the cost can be reduced, at no cost and no obligation.

Run the exposure check →

Two minutes, on screen, no obligation. You'll see your scope status and the levers that decide your bill, and can leave details for your exact figure when UK values publish.