UK to introduce carbon price for certain imports

Both UK importers and overseas exporters of CBAM-able goods should already be looking at the impact on their businesses, writes KPMG UK’s Barbara Bell.

It was confirmed in United Kingdom’s Autumn Budget 2025 that the country’s much heralded Carbon Border Adjustment Mechanism (UK CBAM) will come into force on 1 January 2027. The idea is that the UK CBAM will impose a carbon price on certain imported goods so that they bear a comparable carbon price to similar goods produced domestically under the UK Emissions Trading System (ETS). In other words, the measure is designed to prevent so-called ’carbon leakage’ - the shi...

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Published Date: 16 December 2025