Does a UK steel exporter selling into the EU face CBAM, and can it deduct UK ETS costs?
Yes. The UK is outside the EU ETS, so UK steel entering the EU falls under CBAM. A UK ETS price effectively paid, net of free allocation, may be deductible. Talks on linking the UK and EU systems would change this if a link comes into force.
Today
- UK goods face EU CBAM like other non-EU goods.
- A deduction needs evidence of UK ETS costs actually paid per tonne.
Watch
- Progress on linking the UK and EU emissions trading systems.
- The UK's own CBAM, planned from January 2027, for imports into the UK.
Indian angle
Indian exporters to the UK should plan for the UK CBAM as well as the EU one.
What Senseible does here
Senseible reads fuel, power and production records into dated, fingerprinted installation records, the starting point for the actual emissions your EU importer asks for.
Sources: CBAM Regulation (EU) 2023/956, consolidated, European Commission, CBAM legislation and guidance
Last reviewed 2026-10-22.