CBAM explained: What businesses need to know

Following the launch of a new dedicated CBAM business advice site – cbamsupport.co.uk – Hooper & Co Managing Director David Hooper explains the new requirements and what businesses need to know.

With just months to go until financial obligations begin under the EU’s Carbon Border Adjustment Mechanism (CBAM), UK manufacturers must act now to safeguard their trade with EU customers and prepare for new compliance demands.

At Hooper & Co, our team is already supporting clients to navigate these requirements – and we’ve launched a new dedicated CBAM platform to help more businesses get ahead.

From reporting obligations to emissions tracking, we provide the advice and tools firms need to stay competitive and compliant.

Lots of businesses are asking what CBAM is and why it matters.

The landmark policy has been introduced to combat carbon leakage, where businesses relocate production to countries with less stringent climate rules, thereby undermining domestic decarbonisation efforts.

To prevent this, the UK will require businesses importing over £50,000 worth of specified carbon-intensive goods – including aluminium, cement, fertiliser, hydrogen, iron and steel – to report on their carbon emissions from 2027.

However, the EU’s version is already in a transitional phase. EU importers are currently collecting quarterly emissions reports from their suppliers, with financial charges beginning in January 2026.

This means UK exporters selling into the EU must act now to avoid supply chain disruption and reputational or financial penalties.

We are already seeing EU buyers demanding emissions data from UK suppliers — and failure to provide it could mean lost contracts or blocked market access.

To stay ahead, we’re advising businesses to check if their imports or exports fall under CBAM-affected goods and start collecting emissions data across production processes.

It’s also important to review supply chain impacts and cost implications and prepare for reporting and documentation obligations – including registering in the EU CBAM Registry if exporting into Europe – and monitor updates ahead of UK implementation.

With global climate cooperation on the rise, carbon pricing is now becoming a key feature of international trade policy.

CBAM is not just a green initiative – it’s a customs and trade issue that requires cross-functional planning from finance, logistics, operations and sustainability teams.

Hooper & Co’s new online hub offers practical tools, guidance and access to expert support — all designed to help manufacturers and importers take control of their compliance journey.

We combine over a decade of customs and trade consultancy with deep insight into the regulatory frameworks shaping international trade today.

As the UK finalises its CBAM framework, we are working with clients to manage their EU obligations while preparing for the 2027 rollout. Businesses that prepare early will have the strongest position, both commercially and operationally, as the rules take hold.

If you’re unsure how CBAM affects you, or what you need to do to avoid losing ground to competitors, don’t wait to find out the hard way.