What is CBAM?

The EU’s Carbon Border Adjustment Mechanism (CBAM) is a carbon pricing system for imported goods such as steel, aluminium, cement, fertiliser, hydrogen, and electricity. Its aim is to prevent carbon leakage and level the playing field by ensuring that imports are subject to the same carbon costs as EU producers.

From 2026, importers will need to declare the embedded carbon in certain products and purchase CBAM certificates to offset those emissions. Affected UK businesses must be ready now to avoid penalties and disruption.

Why It Matters to You

If you’re importing CBAM-covered goods—or sit within the supply chain of someone who is—you’ll need to provide verified carbon data. This is particularly relevant to:

• Electrical contractors using imported steel or aluminium components

• Distributors and manufacturers in the construction supply chain

• Any business engaged in cross-border trade with the EU

Failure to prepare could mean lost contracts, supply chain delays, or non-compliance fines.