How is UK CBAM calculated?
The calculation of UK CBAM certificate price will be based on the carbon footprint of imported goods. Companies exporting to the UK will be required to pay a carbon price, reflecting the difference between the carbon price in the country of origin (if applicable) and the UK's carbon price (which is currently one of the highest of all major trading partners).
There is currently a question mark over whether the UK will need to peg the UK ETS price to the EUA price, because if the allowances are not at parity, it will create a significant administrative burden in calculating border levies.
The measurement of emissions for UK CBAM reporting is likely to be similar to the EU's methodology for calculating CBAM emissions.