CBAM explained for UK businesses
What is CBAM?
CBAM stands for Carbon Border Adjustment Mechanism. It applies a carbon cost to certain imported goods, linked to the emissions produced when they are made. It is intended to reduce any price advantage imports might otherwise have because they were produced in countries with lower carbon prices.
The EU’s definitive regime began on 1 January 2026. UK CBAM is due to apply from 1 January 2027.
The specific sectors include aluminium, cement, fertiliser, hydrogen, and iron and steel. The commodity code and the relevant rules determine whether a product is in scope.
CBAM may affect your business if you import covered goods into the UK or supply them to customers in the EU, directly or indirectly. Depending on your role and the goods involved, you may need to check whether products are in scope, collect or provide emissions information, adjust your processes and understand the potential cost implications.
ChamberCustoms can help you understand which requirements may apply and identify practical next steps.
UK and EU CBAM at a glance
| UK CBAM | EU CBAM | |
|---|---|---|
| Starts | Applies to relevant imports from 1 January 2027 | Definitive regime began on 1 January 2026 |
| Threshold | A £50,000 value threshold is assessed using forward-looking and backward-looking tests | A 50-tonne annual threshold applies, except for electricity and hydrogen |
| Who may be responsible | The importer of the relevant goods into the UK | The EU importer or, in some arrangements, an indirect customs representative |
| First financial filing | The first tax return covers imports from 1 January to 31 December 2027. The return and payment are due by 31 May 2028 | The first definitive-regime declaration covers 2026 imports. The declaration and certificate surrender are due by 30 September 2027 |
Which rules may apply to your business?
You import goods into the UK
UK CBAM may apply to specified goods imported into the UK from 1 January 2027. Whether you need to register depends on the statutory £50,000 tests.
A diagnostic review can help you check the goods and import data involved, understand whether the rules may apply and identify what your business needs to prepare.
You export goods from the UK to an EU customer
EU CBAM may affect UK businesses supplying covered goods to EU customers. Your customer may need emissions information from your business or the producer to support its CBAM reporting.
We can help you understand data requests and prepare the information your EU customers may need. If you take responsibility for importing goods into the EU, for example, under DDP terms, we can also review how that affects your position.
You trade under both regimes
Assess UK and EU CBAM separately. A product, supplier or emissions dataset relevant to one system does not automatically settle the requirements under the other. We can help you map the entities, goods and data flows that need to be considered.
What information should you start gathering?
The information you need will depend on the goods, your role and the CBAM regime. Preparation may include:
Commodity codes and product descriptions for potentially covered goods
The importing legal entity and relevant customs arrangements
Countries of origin and production locations
Relevant import or export volumes and values, with records that can be reconciled to customs data
Supplier emissions information and supporting evidence
Evidence of any carbon price paid that may qualify for relief under the relevant rules
How ChamberCustoms can help
We work with you to understand your goods, supply chain and current processes, then agree on practical next steps.
UK CBAM support
Our UK CBAM support starts with a Diagnostic Review of your goods, import arrangements and available data. This helps identify whether UK CBAM may apply and what practical steps your business should take.
Following a Diagnostic Review, our UK CBAM Managed Service can be tailored to your requirements. We manage your import and emissions data, provide access to forecasting software, and complete and submit your CBAM returns on your behalf. The service also includes monthly and quarterly management reports, registration guidance, and quarterly review points to discuss the implications of each return and any actions arising.
EU CBAM support
We can support EU CBAM scope reviews, emissions calculations and methodology reports, supplier data processes, stock data management and training.
Get clarity on your CBAM requirements
Not sure where to start? Tell us what you import into the UK or export to the EU, and what information you currently hold. We’ll help you understand which CBAM requirements may apply and what steps to consider.