Sharing our expertise on the introduction of CBAM

It didn’t make the front pages, but the announcement in the recent Budget that confirmed the implementation of a Carbon Border Adjustment Mechanism (CBAM), set to take effect in January 2027, will have a significant impact on industry in the UK. At Harrison & Clough we are keen to share our expertise and knowledge on this subject to make the complexities and challenges around this transition as straightforward as possible.

This levy will apply to carbon-intensive imports, creating a new regulatory landscape that aims to level the playing field for producers committed to reducing their carbon footprint. Harrison & Clough was actively involved in the government's consultation process regarding CBAM, and we expressed our opinions on the challenges of its introduction.

CBAM will undoubtedly lead to increased bureaucracy and costs for companies engaged in international trade. Businesses will need to ensure that they are compliant with the new regulations, which may require comprehensive assessments of their supply chains and a rigorous understanding of product carbon content. This may involve additional documentation, audits, and possibly investments in technology to track and report emissions accurately.

Moreover, relationships with supply chain partners will become more critical than ever. Companies will need to rely on their suppliers to provide accurate data regarding the carbon intensity of products. Establishing clear communication channels and robust verification processes will be essential to ensure compliance and maintain competitive advantages. The risk of misrepresentation or lack of transparency in carbon reporting could lead to significant penalties under the new framework.

As businesses brace for the implementation of the CBAM, it is imperative that they begin to evaluate their current practices and identify areas for improvement. The transition will require strategic planning, and at Harrison & Clough we are committed to collaborating and sharing ideas with our partners.

The forthcoming CBAM represents both a challenge and an opportunity for businesses. Companies that proactively engage with this transition will not only mitigate risks but can also position themselves as leaders in the shift toward a more sustainable future, and we at Harrison & Clough - dedicated to our mantra of making our customers life as simple as possible – will offer our expertise on this to help you with your import needs.