Carbon border levies take shape across the UK and EU

The UK government has published its first official list of overseas carbon pricing schemes that qualify for price relief under the country's Carbon Border Adjustment Mechanism (CBAM). The list covers 16 countries and gives exporters and importers early clarity on where an existing carbon price can reduce what they owe at the UK border.

The UK CBAM starts in January 2027 and aims to bring the carbon price on imported goods into line with the price paid by domestic manufacturers. Where those goods have already faced an eligible carbon price abroad, price relief prevents the same emissions being charged twice. The government said the relief prevents double taxation and preserves the environmental integrity of the mechanism.

The qualifying mechanisms include established emissions trading schemes such as the EU ETS, the China National ETS, the Korea ETS, and the New Zealand ETS, alongside carbon tax regimes in Chile, Singapore, South Africa, and Serbia.

The amount of relief depends on the carbon price the goods have been subject to. Emissions covered by free allowances are excluded, because no effective carbon price has been paid on them. The government described the list as provisional, based on information up to 19 June 2026, and said it will publish updates as more schemes qualify.

Read more: The next carbon standard: What CBAM and CSRD mean for European businesses

Days earlier, HM Revenue & Customs released the technical rulebook for calculating embedded emissions under the levy. The 28-page System Boundaries Document sets out the production routes and emissions sources that must be counted for iron and steel, aluminium, cement, fertilisers, and hydrogen, plus certain downstream products such as steel tubes, pipes, and fasteners. Overseas manufacturers and independent verifiers can use it to measure and confirm the actual emissions of their goods. Importers reporting verified values, rather than the conservative default figures, can expect a lower levy on many products.

Across the Channel, the European Commission has issued guidance for the verifiers and accreditation bodies that oversee the EU CBAM, and opened access to the CBAM Registry for verifiers from 1 September 2026. For exporters selling into the bloc, the guidance sets out, page by page, what a verifier will check when the first 2026 emissions reports are audited in 2027. “It is the closest thing to seeing the exam paper in advance,” one CBAM expert said. The common thread on both sides of the border is the same: verified carbon data and a demonstrable carbon price now decide the cost of trade.

Read more: EU nature restoration plans due 1 September

Compliance frameworks like CBAM are placing quality and credibility at the centre of carbon pricing, and the integrity behind every carbon credit counts more than ever. Our carbon credit marketplace offers businesses verified credits that drive lasting ecological and economic resilience. The diverse portfolio spans nature-based projects across Africa and Central Asia, from reforestation and agroforestry to clean-cooking projects, each verified to leading standards such as the Verified Carbon Standard and the Gold Standard, and each chosen to deliver benefits beyond carbon: restored habitats, protected ecosystems, and stronger local livelihoods. Buyers can trace each credit from ecosystem to certificate and choose the projects that match their priorities.