Introduction of a UK carbon border adjustment mechanism from

Question 13: Would the market respond adequately to provide for the accreditation of verifiers by accreditation services and the verification of emissions independent verifiers? If regulations in the UK CBAM differ from those in the EU CBAM, the verification of goods for the UK CBAM cannot be used for the EU CBAM. [...] However, if the regulations regarding embodied emissions in the UK CBAM aligned with those of the EU CBAM, the accreditation could be the same for both CBAMs, although sharing the results would require the parties to agree to recognise each other’s verification. [...] Identifying the number of free allowances used for CBAM goods is challenging, making it difficult for the adjustment to accurately reflect the existence of free allowances available to the domestic industry in the context of CBAM goods. [...] Abstracting from a lot of detail, the Government is minded to make the CBAM a border charge with the price determined by the price of domestic permits over the preceding quarter. [...] If technical progress in the UK reduced the demand for emissions, under the proposed plans this would reduce the ETS permit price to clear the ETS market and hence reduce the CBAM levy.