Recommendations on UK carbon border adjustment mechanism

The consultation was launched before the general election was called and closed just weeks after the announcement.

The consulting departments, HM Treasury and HMRC, confirmed that the consultation remained open, but that decisions would be the responsibility of the new government.

IEMA would welcome the introduction of the CBAM, which it views as critical in encouraging the transition to a global low-carbon economy, while supporting the early adopters of low-carbon technologies within and outside the UK.

Our first key recommendation is for CBAM to be implemented without delay. Our members agreed with the consultation proposals that the commodity codes, default values and proposed mechanisms are a good place to start.

Our second recommendation is for the accuracy of emissions data to be improved. Default values are acceptable only in the absence of accurate data, and they must be set high to be effective. IEMA recommends that the government set a goal of improving on emissions data.

The third recommendation is for the scheme to be harmonised with the EU CBAM and others being developed.

For the incoming government, implementing the CBAM as designed could be an early action. We urge the new administration to immediately review methods for capturing better data, to review default values and to make it a priority to align the UK CBAM with that of the EU.