Understanding EU CBAM: What businesses need to know

The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) has introduced new compliance requirements for importers bringing certain goods into the EU. These regulations mean that UK exporters must provide accurate emissions data to support their EU customers in fulfilling their reporting obligations.

CBAM applies to carbon-intensive sectors, including: Cement, Iron & steel, Aluminium, Fertilisers, Electricity, and Hydrogen. 

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.

How We Can Support UK Businesses

The BCC’s CBAM Consultancy Service provides businesses with expert guidance to navigate the complexities of CBAM compliance.

Our consultancy support includes:

• Tailored CBAM assessments – A specialist will review your operations and supply chain to evaluate the carbon impact of your exported goods.
• On-site or remote consultancy – Work directly with CBAM specialists to establish a compliance framework suited to your business.
• Emissions data reporting solutions – Implement a structured CBAM monitoring system to ensure your EU customers receive accurate and verifiable data.
• Software tools – Businesses will receive an initial 12-month licence for the CBAM software used to track and report emissions effectively.

Why This Matters for UK Exporters

• Ensure seamless trade with EU partners by meeting compliance expectations.
• Reduce compliance burdens for your EU importers, making UK goods more competitive.
• Identify emissions reduction opportunities to enhance sustainability.
• Prepare for upcoming UK CBAM legislation, expected from 2027.

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.

The British Chambers of Commerce (BCC) supports UK businesses in understanding and complying with CBAM regulations through its CBAM Consultancy Service. This service provides exporters and importers with the tools and guidance needed to navigate these evolving requirements.

How CBAM Works

CBAM applies to carbon-intensive industries, including iron & steel, cement, aluminium, fertilisers, electricity, and hydrogen. The compliance process involves three key stages:

• 2023-2025 (Transitional Phase): EU importers must submit quarterly reports detailing the carbon footprint of imported goods.
• July 2024: Actual emissions data must replace estimated default values wherever possible.
• 2026 (Definitive Phase Begins): Importers must purchase CBAM certificates to account for any emissions not covered by a carbon price in the country of origin.
• By 2027, the UK is expected to introduce its own CBAM regulations, making it even more important for businesses to prepare now.

How the BCC’s CBAM Consultancy Service Can Help

The BCC’s CBAM Consultancy Service, helps UK businesses understand, prepare for, and comply with CBAM regulations.

Through this service, businesses receive:

• Expert-led assessments to evaluate their carbon impact
• On-site or remote consultancy to establish a CBAM reporting framework
• Specialist software solutions to track and manage emissions data

By proactively addressing CBAM compliance, businesses can minimise trade risks, maintain seamless EU market access, and position themselves for future regulatory changes.

For more information regarding our International Trade & Export Documentation services, please call 01202 714804 or 01202 714808.