The Chartered Institute of Export & International Trade has agreed a new partnership with the Aluminium Federation (ALFED), launched formally at a House of Lords lunch last week.
At the event, a leading trade expert warned of the risk of “significant” costs of the Carbon Border Adjustment Mechanism (CBAM) for businesses, if not implemented correctly.
Partnership
The partnership is designed to strengthen the UK aluminium industry’s global trade capabilities and technical preparedness for changes such as CBAM.
Unveiled to industry leaders, parliamentarians and government officials at ALFED’s annual Westminster gathering, the partnership represents a shared commitment to supporting UK aluminium producers, processors and recyclers.
Both organisations will work together on training, policy and insights as the UK and EU start to bring in new rules affecting the metal, including both the European and British versions of CBAM.
Border adjustment
CBAM is a carbon border tax designed to prevent ‘carbon leakage’, the practice of offshoring production processes in cheaper, higher-polluting countries.
The EU’s CBAM is currently in the ‘transitional’ phase, where businesses are currently subject to only reporting requirements. The next phase is due to open in 2026, at which point border charges will be implemented.
The details of the UK’s planned CBAM have not yet been released, but a government factsheet says that the implementation date will be 1 January 2027.
Cost and admin risks
Anna Doherty, customs practice director at the Chartered Institute, said that customs regulations were becoming “more complex than ever”:
“Managing compliance, optimising costs and avoiding penalties are critical to keeping businesses competitive.
“We look forward to supporting ALFED’s members in their exporting and importing activities, empowering them to trade compliantly and competitively in the global marketplace.”
Doherty warned that divergences between the UK and the EU could result in “significant cost and admin burden for businesses” if the right steps weren’t taken. Specifically, she said that the UK and EU versions of the Emissions Trading Scheme (ETS) needed to be linked.
‘Practical implications’
Nadine Bloxsome, CEO of ALFED, said:
“As we look ahead to the practical implications of CBAM, growing digitalisation of trade procedures and the increasing scrutiny on emissions, it’s never been more important to ensure that UK aluminium businesses are confident, well-informed and globally competitive.
“We’re proud to be working with the Chartered Institute to provide expert support and shape the future of responsible UK trade.”
Volatility
With an expected rise in defence spending across the world, the aluminium sector is one of the metals expected to be in high demand.
However, a volatile supply chain and increasingly complex regulatory landscape are barriers to the production of the metal.
Member exclusive
