Carbon Border Adjustment Mechanism

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New carbon tariffs for EU importers

The Carbon Border Adjustment Mechanism (CBAM) will hit a number of sectors with new carbon tariffs on carbon intensive products such as cement, iron and steel, aluminum, fertilizers and some electricity. The tariff is for EU importers, however it will depend on the Inco terms used and it will be for the contractor to determine the importer of any such goods coming from the U.K. Although the tariff won’t come into effect until 1 January 2026, reporting will likely start next year. The legislation is currently working its way through the European Commission so we will keep an eye on developments and keep you updated on any actions you should take in preparation for this new tariff.