Ammonia and Fertilisers: UK Carbon Border Adjustment Mechanism
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what her policy is on UK CBAM for fertilisers and ammonia.
Answered by Dame Angela Eagle
The Government remains committed to implementing the UK Carbon Border Adjustment Mechanism (CBAM) from 1 January 2027. CBAM will apply to imported goods from the fertiliser sector, and the rate charged will reflect the final carbon price paid by domestic industries after support mechanisms (such as free allowances within the UK ETS) have been taken into account.
Therefore, it is expected that initial liabilities arising from the CBAM will be modest, and the Government does not expect CBAM to put UK farmers at a significant competitive disadvantage.
CBAM, like all taxes, will be kept under review by the Chancellor.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →