UK sets out schemes eligible for CBAM price relief

The UK has published a non-exhaustive list of carbon pricing schemes that may support Carbon Price Relief under its CBAM from 1 January 2027. Recognised systems include emissions trading schemes, carbon taxes in Chile, Serbia, Singapore and South Africa, Australia’s Safeguard Mechanism, Canada’s federal OBPS, India’s CCTS and Taiwan’s carbon fee. Recognition does not automatically exempt imports or credit the scheme’s headline price. Importers must calculate and verify the effective carbon price borne by the producing installation, accounting for covered emissions, free allowances, thresholds, removals, rebates and compensation. That effective price is applied only to embodied emissions covered by the qualifying scheme, converted into sterling and deducted from UK CBAM liability. The government will assess and add further schemes later.
News Link
#UKCBAM #CarbonPriceRelief #CarbonTax #TaiwanCarbonFee #HMRC