Chartered Institute of Export & International Trade expert, Joe Goldsworthy, reacts to media reports that the UK and EU are poised to agree a deal that could exempt British businesses from the European Carbon Border Adjustment Mechanism (CBAM):
"Last night’s report in the Guardian that there is a likelihood of a temporary deal for UK exporters covered in the scope of the EU’s CBAM will be welcomed by many within the sector.
"With uncertainty on the benchmarking mechanism, coupled with the fluctuating price of CBAM certificates, UK exports faced becoming uncompetitive in Europe.
"Exporters will be keen to see the detail on how this temporary deal operates, and many businesses will be keeping a close eye on how to comply with the temporary measures, should they come into force in time for 2026.
"The last couple of years have seen many exporters obtaining information to comply with the regulation. However, this has proved particularly difficult in some complex supply chains in industries like steel and aluminium.
"With the introduction of the UK CBAM in 2027, exporters will still need to ensure due diligence with the recording of emissions to prove their products are compliant. The temporary deal could potentially offer some form of respite, but it is crucial that operators in the sector remain vigilant and obtain information on emissions within their supply chain to prepare for CBAM both within the EU and UK."
