UK CBAM poll finds supplier emissions data is the main compliance barrier

What happened

An edie poll held during its UK CBAM masterclass indicates that many businesses have started preparing for the UK Carbon Border Adjustment Mechanism, but detailed emissions information from suppliers remains a major gap.

Of those responding, 54% said they had completed an assessment of whether the mechanism applied to their organisation and 16% said that work was under way. A separate question on individual imported commodities found that 46% had finished this review, with 27% still carrying it out.

Supplier carbon information was the most frequently selected compliance concern. Some 66% of respondents said obtaining this data was their biggest challenge, particularly where it is needed to calculate charges using a supplier's emissions rather than government-set default figures.

UK CBAM will apply from 1 January 2027 to specified imported goods in aluminium, cement, fertiliser, hydrogen, iron and steel. The relevant threshold is £50,000 of covered imports over a rolling 12-month period.

Why it matters

Importers need product-level records, including commodity codes, to establish whether goods fall within the scheme. They must also identify the party responsible for the import and monitor the value of relevant imports against the threshold.

The findings point to a practical issue for businesses supplying the UK: emissions, origin, traceability and carbon-pricing information may need to move through the supply chain in a usable and sufficiently evidenced form. Companies may initially rely on default values where permitted, but should weigh that option against the cost and work involved in securing and managing supplier-specific data.

CBAM preparation therefore involves more than tax or customs teams. Procurement, finance, supply-chain, sustainability and contractual functions may all need defined roles. Contracts may also need provisions on data delivery, cooperation, verification, late or inaccurate information, and responsibility for CBAM-related costs.

What's next

Before the measure takes effect on 1 January 2027, businesses can map imports to commodity codes, confirm liable importers and begin engagement with priority suppliers. They can also compare the use of default values with supplier-specific emissions data and establish internal ownership and controls for CBAM reporting.