Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the UK Carbon Border Adjustment Mechanism will have a military use exemption.

From 1 January 2027, the UK Carbon Border Adjustment Mechanism (CBAM) will apply to specific goods imported from the aluminium, cement, fertiliser, hydrogen, and iron & steel sectors. The specific goods are listed in the Government response to the consultation on the ‘Introduction of a UK Carbon Border Adjustment Mechanism’, this is available at: Consultation on the introduction of a UK carbon border adjustment mechanism - GOV.UK

The UK CBAM is designed to address the risk of carbon leakage and to ensure that CBAM goods which are imported from overseas face a comparable carbon price to what is paid by manufacturers producing the same goods in the UK.

The UK CBAM does not apply to imports of military equipment. Therefore, the UK CBAM will not have a specific military use exemption.