EU Carbon Reporting Update
The EU’s new carbon border adjustment mechanism (CBAM) went live in October, and whilst the reporting of carbon emissions on selected materials is the European importer’s responsibility, we feel it’s important to provide UK exporters with a quick update on where we’re at.
Currently, CBAM is in a transitional phase, with charges for EU importers based on CO2 used to make goods coming into play in 2026. For now, the only obligation EU importers have is to report on the amount of CO2 being used, with the first report due in January.
Already though we are starting to hear individual cases of exporters being asked for CBAM paperwork for goods containing steel, aluminium, iron, electricity, cement, and some fertilisers. This is challenging as the EU has not produced any standardised documentation for UK exporters to use. We are currently working with the British Chamber of Commerce to help policy makers in the UK and EU understand how this is affecting businesses, as well as calling for a standardised carbon reporting mechanism for exporting goods into the EU. If you are a member of the Chamber who is currently being affected by changes as a result of CBAM, please get in touch at [email protected]. For more information on CBAM, please see our guide here.