techUK responds to consultation on the introduction of a UK CBAM

techUK has submitted a response to the HM Treasury and HMRC led consultation on the proposals for the design and administration of the UK Carbon Border Adjustment Mechanism (CBAM).

Some of the policy recommendations we put forward to the Committee include:

Align with the EU on default values calculation methods and timelines.
Introduce provisions for using default values when obtaining precise data is particularly challenging so that businesses can comply without incurring excessive costs or administrative burdens.
Allocate CBAM revenue to net zero initiatives, despite this not being a traditional practice.
Agree a longer implementation period to allow businesses time to adapt and avoid high consultancy fees or incorrect returns.
Cooperate with international organisations to ensure global oversight of CBAMs to prevent trade distortions.
Regularly review CBAM scope and ensure technological developments and changes in international standards are taken into consideration.
Ensure greater interoperability between the UK and EU CBAM regimes to avoid confusion and trade barriers.
Require businesses to disclose the percentage of scrap metals used in complex CBAM goods and establish a threshold for these to be exempted to encourage circular economy practices.
Provide clear guidance on enforcement procedures to help businesses understand their obligations and avoid inadvertent non-compliance.
Establish an additional threshold based on the weight of imported items to account for smaller high-value items.
Exempt small business parcels and consumer parcels from the mechanism.
Work with UKAS to determine verification requirements to ensure market readiness and effective compliance.
Include lists of customs declarations containing CBAM goods on the upcoming online returns platform to streamline reporting.
Publish detailed methodologies for calculating CBAM rates for each sector to provide businesses with greater predictability and certainty.
Establish varying CBAM rates across sectors to advance decarbonisation and technological development effectively.

techUK will continue working with the UK government to address the sector’s concerns and ensure the effective implementation and operation of the UK CBAM. Members will be updated about any developments.

techUK response to consultation on UK CBAM

techUK - Committed to Climate Action

Visit our Climate Action Hub to learn more or to register for regular updates.

By 2030, digital technology can cut global emissions by 15%. Cloud computing, 5G, AI and IoT have the potential to support dramatic reductions in carbon emissions in sectors such as transport, agriculture, and manufacturing. techUK is working to foster the right policy framework and leadership so we can all play our part. For more information on how techUK can support you, please visit our Climate Action Hub and click ‘contact us’.

Upcoming climate events

Latest news and insights

13 Jun 2024

techUK responds to consultation on the introduction of a UK CBAM

techUK has submitted a response to the HM Treasury and HMRC led consultation on the proposals for the design and administration of the UK Carbon Border Adjustment Mechanism (CBAM).

Consultation responses

07 Jun 2024

How does sustainability play a role in the manufacture of products placed on the market and what are the latest legal requirements?

London Tech Week blog by Assent

Industry views

29 May 2024

techUK and Green Digital Skills, Green Software and GreenOps

techUK is asking members to get involved with a new focus area on so called 'GreenOps', a topic that has come up more and more recently. This is an open ended ask and we’re keen to get members involved if they have developed ‘green ops’, embedded the green software foundation principles in to practice, or specifically looked at green digital skills.

techUK news and views