Housing: Construction
The question
To ask the Chancellor of the Exchequer, what assessment has been made of the potential impact of the Carbon Border Adjustment Mechanism (CBAM) on housebuilders and housebuilding costs from January 2027.
Answered by Ministry of Housing, Communities and Local Government
The UK Carbon Border Adjustment Mechanism (CBAM) will be introduced from 1 January 2027 and will apply to highly traded, carbon-intensive goods, such as cement and iron and steel. The CBAM is an environmental measure, designed to mitigate the risk of carbon leakage and ensure that these carbon-intensive imports face a carbon cost that is comparable to that faced by equivalent goods produced in the UK.
A tax information and impacts note can be found at the following link: https://www.gov.uk/government/publications/introduction-of-carbon-border-adjustment-mechanism/carbon-border-adjustment-mechanism#summary-of-impacts.
The government expects liabilities arising from the CBAM to be modest in its early years. The Government intends to publish illustrative CBAM rates this autumn to help businesses better understand the potential effects of the policy.
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