The UK CBAM will not include indirect emissions until 2029

The UK will initially exclude indirect emissions from its Carbon Border Adjustment Mechanism (CBAM). The budget published on November 26 states that indirect emissions associated with the production of CBAM goods will not be included in the scope of the mechanism when it is implemented on January 1, 2027. This measure has been postponed until at least 2029 and reflects continued support for the Compensation Scheme for Energy Intensive Industries (EII).

Given the strategic importance of oil refineries for energy security, a separate request for evidence will be published for the fuels sector and the possibility of including petroleum products in the UK’s cross-border carbon adjustment mechanism will be assessed in the future.

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