Guidance

Carbon Border Adjustment Mechanism: List of current qualifying carbon pricing schemes

Published 27 August 2026

The UK CBAM will ensure highly traded, carbon intensive CBAM goods from jurisdictions outside the UK face a comparable carbon price to that paid by UK manufacturers. Where those CBAM goods have already been subject to eligible carbon prices, the purpose of carbon price relief is to prevent double taxation, while maintaining the environmental integrity of CBAM.

This list is intended to help importers prepare for the introduction of CBAM by providing clarity on overseas carbon pricing schemes that currently meet the qualifying criteria, as set out in The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026.

It supports the assessment of whether embodied emissions in a CBAM good have been subject to an overseas carbon pricing scheme that may be eligible for relief under UK CBAM rules.

The list is based on the information available as of 19 June 2026 and will be updated as further schemes are assessed.  

The list is not exhaustive. The government is aware there are some regional schemes that may also meet these criteria currently, as well as some schemes currently in development, that may meet these criteria when they are finalised and introduced. The government will keep this draft list under review and publish an updated list in due course.

The amount of relief that can be claimed will depend on the effective carbon price the good has been subject to. Emissions covered by free allowances do not qualify for relief because no effective carbon price has been paid on them. Any rebates or refunds received will also reduce the amount of relief available. In some cases, no carbon price relief will be available. For example, where all emissions are covered by free allowances or where a scheme provides full relief or rebates. Guidance on how to calculate the effective carbon price is available on GOV.UK.

In all cases, liable persons remain responsible for determining eligibility, claiming carbon price relief, and fulfilling the associated record-keeping requirements.

Schemes recognised as a qualifying carbon pricing scheme (QCPS):

Australia Safeguard Mechanism

Canada Federal Output-Based Pricing System (OBPS)

Chile Carbon Tax

China National Emissions Trading System

EU Emissions Trading System (EU ETS)

Indian Carbon Credit Trading Scheme (CCTS)

Japan GX-ETS

Kazakhstan Emissions Trading System (KAZ ETS)

Korea Emissions Trading System (K-ETS)

Montenegro Emissions Trading Scheme

New Zealand Emissions Trading Scheme (NZ ETS)

Serbia Carbon Tax

Singapore Carbon Tax

South Africa Carbon Tax

Swiss Emissions Trading System (CHETS)

Taiwan Carbon Fee

If, after 19 June 2026, there are any changes to the schemes listed which mean they no longer fully meet the criteria, they will not be a qualifying carbon pricing scheme.

The government is aware there is a wide range of additional carbon pricing schemes and is committed to adding further schemes to the list where they fully meet criteria for carbon price relief.

The UK plays an active role in supporting the development of carbon pricing schemes across the world, partly through our participation in Partnership for Market Implementation, and welcomes engagement on how carbon pricing schemes currently under development could meet the criteria for carbon price relief under the CBAM.

If a scheme meets all the criteria but is not listed here, it may still be a qualifying carbon pricing scheme. Details of carbon pricing schemes that may meet the criteria for inclusion on this list can be emailed to cbampolicyteam@hmrc.gov.uk.