CBAM (Carbon Border Adjustment Mechanism) is a carbon offsetting initiative that complements ETS and supports objectives to encourage cleaner industrial production.
EU CBAM
EU CBAM came into effect on 1st January 2026.
It applies to
- aluminium
- cement
- electricity
- fertiliser
- hydrogen
- iron & steel
It effects EU importers bringing in more than 50 tonnes of CBAM goods over a 12-month period need to register and buy certificates based on carbon emissions. Hydrogen and electricity have no threshold.
CBAM applies to goods imported into the EU that would have offset their carbon usage if they had been produced inside the EU under the EU Emissions Trading System.
Your first report will cover 1st January - 31st December 2026. Declarations for 2026 period need to be submitted by 30 September 2027.
UK CBAM
UK CBAM will come into effect on 1st January 2027.
It applies to
- aluminium
- cement
- fertiliser
- hydrogen
- iron & steel
Any importers bringing in £50,000 or more of CBAM goods over a 12-month period need to register and comply.
Importers pay the difference between the carbon price paid where the goods were produced and the carbon price that would apply if they were made in the UK.
Your first report will cover 1st January - 31st December 2027 and is due by 31 May 2028. After that, you'll need to report every quarter starting in 2028.
