UK CBAM default emissions values published, applying from January 1, 2027
On October 16 the UK government published default greenhouse-gas emissions values for its Carbon Border Adjustment Mechanism (UK CBAM). They are set per CN code regardless of country of origin and apply from January 1, 2027 to December 31, 2028. Companies exporting steel, aluminium and similar goods to the UK may be affected by how their UK importers choose to report.
Key points
- Default values apply from Jan 1, 2027 to Dec 31, 2028; origin-specific values per CN code are planned from 2029
- Illustrative CBAM rates per tonne of CO2: aluminium £9.79, cement £8.78, fertiliser £1.45, steel £9.69, hydrogen £9.24
- Actual rates are to be published separately by end-2026; defaults for sectors other than fertiliser carry a 10% mark-up
Background
Under UK CBAM, importers can use government-set default values instead of measured emissions when reporting. The new values are calculated from EU data, weighted by the UK's import mix, with EU-origin goods excluded.
The guiding principle is that default-value users should not be better off than those using measured data, hence the 10% mark-up. Using defaults for precursors with measured values for the final product is allowed, but not the reverse. The rates are illustrations, not final figures.
What it means for shops
UK importers will weigh default values against measured emissions. Japanese companies exporting covered goods, or supplying materials into those products, may be asked by customers for emissions data. The scope is mainly materials sectors, but small suppliers can still be part of the chain.
What shops should do
- Check whether your products' CN codes fall under covered goods (aluminium, cement, fertiliser, steel, hydrogen, etc.)
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Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.