Carbon Border Adjustment Mechanism (CBAM): New Rules for Businesses

July 14, 2026 · WOWERI

The UK has introduced a new carbon tax - the Carbon Border Adjustment Mechanism (CBAM). It may affect businesses working with imported goods. CBAM was introduced as part of the Finance Act 2026.

Introduction of the Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) is a new tax introduced in the UK as part of the Finance Act 2026. It aims to reduce greenhouse gas emissions and promote the transition to a low-carbon economy.

How CBAM Works

CBAM will apply to the import of certain goods, such as cement, electricity, and steel. Importers of these goods will be required to purchase certificates that confirm that the greenhouse gas emissions associated with the production of these goods have been accounted for.

Impact on Business

CBAM may affect businesses working with imported goods. Importers will be required to purchase certificates, which may increase their costs. Additionally, CBAM may impact the competitiveness of UK companies in the global market.

Source: legislation.gov.uk