The UK CBAM is Coming, Are Your Projects Financially Prepared?

With the Government last week unveiling the UK CBAM Consultation let’s look at how the UK CBAM will impact your bottom line and your projects.

As we know the UK CBAM, comes into force from 2027, but this isn’t just another regulatory shift. Its effects will cascade through supply chains, reshaping cost structures across multiple sectors.

Rising Cost Pressures
From 2027, imports of carbon‑intensive materials, such as steel for automotive manufacturing, aluminium for construction, or fertilisers for agriculture, will carry a CBAM cost.

These additional charges have the potential to raise production costs, fuel inflationary pressure, and squeeze margins at every stage of the value chain.

Sector Disruption for Long‑Term Projects
Businesses operating with multi‑year project lifecycles are especially exposed.
For example, A wind farm, hotel, or housing development planned today could face substantial, unbudgeted increases in material costs when CBAM charges begin.

Steel, iron, aluminium, and cement, core materials in infrastructure and development, will all be affected. That means decisions made now could carry future cost risks that aren’t currently accounted for.

Forward Planning Is No Longer Optional
CBAM is set to influence procurement, pricing, risk planning, and project viability across the UK economy.
The businesses that prepare early will safeguard margins, protect delivery timelines, and stay competitive. Those that delay may face unwelcome surprises as the new costs come into force.

The Government launched consultations on the secondary legislation last week that will govern registration, record‑keeping, calculation rules, and tax return processes. This consultation is open until 24 March 2026, with further draft legislation planned for Spring 2026.

Our very own CBAM expert Craig Stobo has recently been shared his thoughts in a very insightful article in Accountancy Age which you can read here.