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Written question asked by Helen Maguire (Liberal Democrat) on Friday, 10 October 2025, in the House of Commons. It was due for an answer on Tuesday, 14 October 2025. It was answered by Dan Tomlinson (Labour) on Wednesday, 15 October 2025 on behalf of the Treasury.

Carbon Emissions: Taxation

Question

To ask the Chancellor of the Exchequer, whether the UK Carbon Border Adjustment Mechanism will exempt imports of in-scope raw materials that are used in the manufacture of military equipment in line with the EU UK Carbon Border Adjustment Mechanism.

Answer

From 1 January 2027, the UK Carbon Border Adjustment Mechanism (CBAM) will apply to specific goods imported from the aluminium, cement, fertiliser, hydrogen, and iron & steel sectors. The specific goods are listed in the Government response to the consultation on the ‘Introduction of a UK Carbon Border Adjustment Mechanism’, which is available at: Consultation on the introduction of a UK carbon border adjustment mechanism - GOV.UK. There are no plans for exemptions from this list.

The UK CBAM is designed to address the risk of carbon leakage and to ensure that CBAM goods which are imported from overseas face a comparable carbon price to what is paid by manufacturers producing the same goods in the UK.

Secondary information

Type
Written question
Reference
80945
Session
2024-26
Subjects
Defence equipment Imports Manufacturing industries Carbon emissions Taxation Raw materials
Contains statistics
Yes
Link
View this Written question on www.parliament.uk