The UK government has published a list of foreign carbon pricing schemes that are currently eligible for carbon price reductions under the British Carbon Boundary Regulation Mechanism (CBAM), ahead of the introduction of this mechanism. ,
,This list, based on information available as of June 19, 2026, is intended to help importers determine whether foreign carbon prices have already been set for emissions related to CBAM products that may be eligible for exemption. This measure aims to prevent double taxation while ensuring that imported carbon-intensive goods have a carbon price comparable to that paid by British producers.
EU ETS, China and India are among the 16 recognized schemes.
The government currently recognizes 16 eligible carbon pricing schemes, including the EU Emissions Trading Scheme (EU ETS), China's national ETS, India's Carbon Credit Trading Scheme (CCTS), South Korea's K-ETS, Japan's GX-ETS, and the Australian Safeguard Mechanism. The list also includes carbon pricing systems in Canada, Chile, Kazakhstan, Montenegro, New Zealand, Serbia, Singapore, South Africa, Switzerland and Taiwan.
The UK Government stressed that the list is not exhaustive, noting that some regional carbon pricing systems may already meet the qualification criteria and that the schemes currently under development may become acceptable once completed and implemented. Thus, the list will be reviewed and updated as additional schemes are evaluated.
,The benefits will depend on the actual carbon price paid ,
,The amount of benefits available will depend on the actual carbon price actually paid for the embedded emissions of imported goods. Emissions that are subject to free benefits will not be eligible for exemption because they have not been effectively priced for carbon emissions, while discounts and refunds will reduce the amount that can be claimed. Accordingly, benefits may not be available if all emissions are covered by free benefits or when a foreign scheme provides full discounts or other benefits.
The government also stated that if any changes made after June 19, 2026 lead to the fact that one of the listed schemes will no longer fully meet the qualification criteria, this scheme will cease to meet the requirements for price reduction.
