CBAM: The UK Cement Sector Facing Regulatory Pressure from 2027

Key Information

The cement industry is facing the implementation of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which is already operational, while the UK is preparing its own scheme for 1 January 2027. A lack of alignment between the two CBAMs poses a tangible risk for the UK cement sector.

Key Points

• The UK CBAM will come into force on 1 January 2027 (public consultation scheduled for February 2026)
• Reference: EU CBAM (Regulation (EU) 2023/956 of the European Parliament and Council of 10 May 2023), UK CBAM draft under consultation
• The industry fears a loss of competitiveness and an increase in the risk of cement imports with higher carbon footprints

Background and Key Issues

Since 2023, the EU has enforced CBAM to counter carbon leakage risks, with cement among the products covered (règlement UE 2023/956, annexe I – Regulation (EU) 2023/956, Annex I). The UK is finalising a similar mechanism for January 2027, but technical and tariff divergences remain. The industry currently faces uncertainty over the calculation methods for imported emissions and the new compliance costs this will place on cross-border UK/EU flows. The UK cement sector has committed to decarbonisation (63% emissions reduction since 1990 according to the Mineral Products Association): a poorly calibrated CBAM risks destabilising this pathway and encouraging carbon-intensive cement imports from outside the EU.

Impact on Stakeholders

Declarants must monitor the level of alignment between the UK and EU CBAM schemes, with particular attention to the evidentiary requirements for imported emissions. Importers will need to systematically collect data on the carbon content of their products to anticipate CBAM UK import charges. Freight forwarders should recalibrate quotation and flow analysis tools to include the new compliance costs. Compliance officers must ensure accurate carbon reporting to both UK and EU authorities.

Next Steps

• February 2026: End of the UK CBAM consultation period
• May 2026: Final text expected to be published
• 1 January 2027: UK CBAM enters into force
• Recommended actions: Participate in the consultation, map sensitive flows, adjust carbon tracking systems, verify supplier documentation

Le CBAM UK sera effectif au 1er janvier 2027, avec modifications essentielles attendues d’ici fin 2026.
(The UK CBAM will take effect on 1 January 2027, with key amendments expected by the end of 2026.)

Source: The Manufacturer / Règlement UE 2023/956 (Regulation (EU) 2023/956)