How will the UK's carbon border charge work from January 2027?
HMRC has published illustrative rates, default values and technical rules for the UK's carbon border charge on imported steel, aluminium, cement, fertiliser and hydrogen. Here is how the charge is worked out and who pays it.
- Proposed
- Consultation10 Feb 2026
- Adopted8 Sep 2026
- In force1 Jan 2027
The charge is set out in the Finance Act 2026 and in regulations made in 2026. The rates published on 16 October are illustrative only and create no tax bill. The emissions regulations (SI 2026/995) were made on 8 September 2026 and come into force on 1 January 2027.
Map legend · Themes
- Standards & frameworksGHG Protocol, ISO, SBTi, PCAF and other rulebooks for measuring and target-setting.
- Disclosure & reportingISSB, UK SRS, CSRD/ESRS, SEC and state climate disclosure rules.
- Carbon pricing & tradeEmissions trading schemes, carbon taxes, CBAM and border measures.
- Carbon markets & offsetsVoluntary carbon markets, integrity bodies, Article 6.
- Energy & transportPower, heat, buildings, EVs and fuels policy.
- Nature & landBiodiversity, deforestation, TNFD, land use and food.
- Supply chains & productsProduct footprints, due diligence, circularity, packaging.
- Corporate targets & actionCompany net-zero targets, transition plans, major deals.
- Global agreementsCOP, UNFCCC, IMO, ICAO and international negotiations.
Concept library
All terms →- Carbon leakage
- When production moves to countries with weaker climate rules, so emissions move rather than fall.
- Carbon price relief
- A reduction in the charge for carbon prices already paid in the country where the goods were made.
- Default value
- A standard emissions figure set by the government for use when real factory data is not available.
- Embodied emissions
- The greenhouse gases released when a product was made.
- Free allowances
- Emissions permits given to some UK factories at no cost, to protect them from foreign competition.
What Baseline is
A calm, daily explainer of one sustainability announcement: what it is, what actually changes and when, who it affects, and what it means.
Not a fact-check or a hot take. Every page is written from the primary documents, with an extra layer for consultants, reporting leads and finance teams. About us