[UK Publishes Indicative Carbon Border Tax Rate for Iron and Steel Ahead of 2027 Implementation]

Published: Oct 23, 2026 13:13 (GMT+8)

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The UK government published its first illustrative Carbon Border Adjustment Mechanism (CBAM) rates on October 16, setting an indicative charge of 9.69 GBP per tonne of CO₂-equivalent emissions for imported iron and steel. The mechanism will take effect on January 1, 2027, imposing carbon costs on covered imports to align them with those faced by domestic producers. The indicative rate is considerably below the UK Emissions Trading Scheme's July–September average carbon price of 58.15 GBP per tonne, reflecting free emissions allowances available to domestic industries. The government clarified that the published rates are preliminary and do not represent final tax liabilities. Confirmed rates for January–March 2027 will be announced before the end of 2026 and revised quarterly thereafter. For Indian steel exporters, the measure introduces an additional cost consideration, with actual liabilities depending on the emissions intensity of exported products and applicable carbon-price relief.

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