What is CBAM?

The EU’s Carbon Border Adjustment Mechanism (CBAM) is a carbon pricing policy that applies to
certain goods imported into the European Union. From 1 January 2026, importers of steel,
aluminium, cement, fertilisers, hydrogen and electricity are required to account for the carbon
emissions embedded in those goods.

In practical terms, this means that manufacturers and producers outside the EU who supply these
goods to European customers must now calculate, document and report the greenhouse gas
emissions generated during production, in a specific format, verified by an accredited third party,
and submitted through the EU’s CBAM Registry. The methodology is detailed and product-specific: it
covers direct process emissions, indirect emissions from electricity consumption, and the embedded
emissions of input materials used in production.

The UK is introducing its own Carbon Border Adjustment Mechanism from 1 January 2027, covering
aluminium, cement, fertilisers, hydrogen, and iron and steel. Unlike the EU scheme, which operates
through a certificate system tied to the EU Emissions Trading Scheme, the UK CBAM will function as
a tax, administered by HMRC. Importers will be required to register, calculate their CBAM liability
based on the embedded emissions of their goods and the prevailing UK ETS carbon price, and submit
a return at the end of each accounting period.

Are you a manufacturer with EU customers who are asking you for CBAM emissions data? Or are you
a UK manufacturer wanting to understand what CBAM means for your business? If so, we can help.

Why does this matter?

CBAM is a new and technically demanding regulation. Many businesses are encountering it for the
first time through requests from their EU importers, often with little time to respond and limited
guidance on what is actually required.

The EU CBAM calculation methodology is precise. Operators must define system boundaries for each
production process, monitor emissions at installation level, attribute those emissions to specific
goods, and prepare an emissions report that meets the requirements set out in the implementing
regulations. From 2026, that report must be verified by an accredited verifier before the data can be
used in a CBAM declaration.

For many UK manufacturers, the picture is about to become more complex still — requiring the
navigation of both EU CBAM as an operator supplying European customers, and the forthcoming UK
CBAM as an importer.

What do we offer?

We offer practical, hands-on CBAM support tailored to manufacturers and producers at any stage of
their compliance journey, tailored to your specific supply chain needs.

Training — available in-person or online, our training sessions cover the fundamentals of CBAM,
what the regulations require of you, and how to approach emissions calculation and reporting for
your specific sector and production process.

1-to-1 Consultancy — working directly with your team, we help you understand your obligations,
support you with your emissions calculations, prepare your monitoring plan, and prepare you for
verification.

What will you get?

A clear understanding of what CBAM requires from you, and the confidence to meet it. Whether you
are responding to your first data request from a European customer, building internal capacity to
manage CBAM on an ongoing basis, or preparing for the UK scheme, we will help you move from
uncertainty to a position where you know what you