UK Carbon Border Adjustment Mechanism (CBAM): Are You Ready?
Understand how the new UK CBAM regulation will impact your imports, exports, and supply chain strategies. Start preparing now for compliance
What is CBAM and why does it matter for UK importers & exporters?
The Carbon Border Adjustment Mechanism (CBAM) marks a significant shift in how carbon emissions will be managed in trade, aiming to place a carbon price on high-emission imports. Set to take effect in 2027, the UK CBAM seeks to prevent carbon leakage, protect local industries, and encourage the import of lower-carbon goods.
From 2027, UK importers of carbon-intensive products will need to start reporting emissions data, with full compliance expected in the following years.
UK CBAM Industries
The UK Carbon Border Adjustment Mechanism will apply to specific industries with high greenhouse gas emissions, currently including:
Aluminium
Cement
Ceramics & Glass
Fertilisers
Hydrogen
Iron & Steel
How are UK importers affected?
If you’re importing products from the categories above, the UK CBAM will require tracking and managing emissions data and paying a carbon price based on the carbon intensity of the goods.
Familiarising yourself with these requirements is critical to staying compliant as the mechanism’s start date approaches!
Implications for UK Exporters: EU CBAM Compliance
For UK exporters to the EU, understanding EU’s CBAM requirements is essential, as similar carbon compliance regulations are already in effect.
Since July 2024, UK exporters have been required to report the embedded emissions in products sent to the EU.
Affected by UK CBAM? Start preparing now!
Our clear recommendation for UK businesses affected by CBAM regulations is to start preparing now!
Understanding what new regulations means for your business and implementing the necessary processes is key.
This might involve hiring new staff, training employees, reviewing your supply chain, and perhaps investing in tools that can help you streamline your CBAM reporting.
How can Emma E-Doc help you manage CBAM compliance?
Emma E-Doc enables fast and accurate identification of country of origin and tariff numbers; customs data essential for CBAM reporting!
- With Emma E-Doc, you can quickly identify declarations that include specific countries of origin and tariff numbers impacted by CBAM, making it easier to gather the required data
- Emma E-Doc also offers customisable alerts and dashboards for specific tariff numbers, countries of origin, or other customs data related to CBAM as well as other regulations related to your business
While CBAM regulations themselves can’t be eased, using the right tools can make managing them much simpler!