One month to CBAM. UK Exporters Must Act Now

6 September 2023

With the EU’s Carbon Border Adjustment Mechanism (CBAM) starting to come into effect from 1 October, concern is mounting that UK companies may be ill-prepared to deal with it.

CBAM is an environmental policy instrument designed to apply the same carbon costs to products being imported into the EU, as would be incurred if they were produced inside the EU. As such, it will have a particularly big impact on the UK’s exporters of carbon-intensive goods such as cement, electricity, fertilizers, iron and steel, aluminium, and even hydrogen.  It applies not only to raw materials, but also to derivative products.  In the case of cement, for instance, CBAM goods include calcinated clay, cement clinker, cements (white Portland, other Portland, and other hydraulic), and aluminous cements.

Affected goods will be identified according to the “combined nomenclature” classification system (based on the HS codes used in international trade). 

These charges, the first of their kind anywhere in the world, will be phased in gradually, with a “transition period”.  CBAM is expected to significantly increase red tape, and will add costs for importers of carbon-intensive products into the EU, as well as adding important reporting obligations and carbon charges.

CBAM will impact UK producers, who may well have to share in the added charges with their importers.  Chamber International is developing a detailed workshop to help British firms plan effectively for CBAM – dates for this will be announced soon. 

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