The United Kingdom has recognized carbon pricing schemes from the European Union and 15 countries, including Montenegro and Serbia. This means that any carbon price paid in these countries will be deducted from the price within the UK’s Carbon Border Adjustment Mechanism.
The United Kingdom’s CBAM will enter into force in January 2027, while the EU’s CBAM entered into force on January 1, 2026.
Now the UK government published the list of the schemes recognized as a qualifying carbon pricing scheme (QCPS).
“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,” the UK government stressed.
The UK CBAM does not require certificates
Of note, since the beginning of this year, firms in the EU that import aluminum, cement, electricity, iron and steel, hydrogen and fertilizers from non-EU countries are obliged to pay a carbon price under CBAM. The deadline to submit CBAM certificates for 2026 is May 31, 2027.
The UK scheme does not include electricity, but does cover ceramics and glass. The UK CBAM does not require certificates, relying instead on direct tax payments. The first filing deadline is May 31, 2028.
This UK 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.
The list is based on the information available as of June 19
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 June 19, 2026, and will be updated as further schemes are assessed, the update reads.
The amount of relief that can be claimed will depend on the effective carbon price that 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, according to the update (guidance on calculating the effective carbon price).
Montenegro introduced national ETS back in 2020
Of note, Montenegro has finished the introduction of a national emissions trading system (ETS) in early 2020.
Serbia introduced taxes on greenhouse gas emissions and carbon-intensive product imports on January 1, 2026. Both are EUR 4 per ton of CO2 equivalent.
These two countries are the only Energy Community contracting parties with carbon pricing in place.
Interestingly, while BRICS countries have opposed the EU CBAM, three of its members – China, India, and South Africa – are on the UK list.
