# Does a UK steel exporter selling into the EU face CBAM, and can it deduct UK ETS costs?

Canonical: https://senseible.earth/answers/uk-steel-exporter-eu-cbam-and-uk-ets

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.

- [India UK trade deal and UK CBAM](https://senseible.earth/answers/india-uk-trade-deal-uk-cbam)
- [South Africa carbon tax deduction](https://senseible.earth/answers/south-africa-carbon-tax-cbam-deduction-steel)

Sources: [CBAM Regulation (EU) 2023/956, consolidated](https://eur-lex.europa.eu/eli/reg/2023/956/2025-10-20), [European Commission, CBAM legislation and guidance](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-legislation-and-guidance_en)

Last reviewed 2026-10-22.