CBAM (Carbon Border Adjustment Mechanism)
What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a regulatory measure introduced by the European Union (EU) to prevent carbon leakage and encourage greener global trade practices. By applying a carbon price to imported goods, CBAM ensures that products entering the EU face similar carbon costs to those produced within the EU. This helps level the playing field, reducing incentives for businesses to relocate production to countries with lower environmental standards.
CBAM applies to carbon-intensive sectors, including:
- Cement
- Iron & steel
- Aluminium
- Fertilisers
- Hydrogen
Now that CBAM has entered its Definitive Regime (from 1 January 2026), EU importers are subject to financial liability linked to the embedded emissions of imported goods. As a result, UK businesses must be prepared to accurately calculate and report emissions data to support their EU customers’ compliance obligations.
To maintain a competitive edge and avoid trade disruptions, UK businesses must be prepared to accurately calculate and report emissions data associated with their exports.
To understand more about CBAM, please click here.
How We Can Support UK Businesses
- BCC EU CBAM Health Check Tool: assess your business's readiness for CBAM compliance with this free, interactive resource designed to help UK businesses evaluate their preparedness for CBAM compliance under the EU’s Definitive Regime.
- BCC CBAM Consultancy Support: expert support and guidance to help businesses navigate the complexities of CBAM compliance, including tailored CBAM assessments, remote consultancy, emissions data reporting solutions, and calculated embedded carbon emissions.
- EU CBAM Advanced Masterclass: practical half-day masterclass provides a clear overview of CBAM requirements and how businesses can respond.
- EU CBAM Stock Management Software: a practical way to manage CBAM data across your business.
Contact Us if you have any questions or would like further support.
