UK-EU Summit Sparks New Momentum on Carbon Border Adjustment Policy
- GMCCTradeteam
- Jun 2
- 1 min read
Following the UK-EU Summit in May 2025, on May 19ththe UK and EU announced a "Common Understanding" that included, amongst other provisions, plans for closer cooperation on the EU’s Carbon Border Adjustment Mechanism (CBAM). This development has important implications for UK businesses trading with the EU.
What Does This Mean for UK Businesses?
UK exporters of CBAM-covered goods (e.g. steel, aluminium, cement, fertilisers, hydrogen, electricity) will continue to be subject to EU CBAM requirements when exporting to the EU.
The UK and EU have committed to explore mechanisms for mutual recognition of carbon pricing systems, which could reduce administrative burdens and avoid double carbon charges.
This cooperation may lead to streamlined reporting, shared emissions data, and potential exemptions or adjustments for UK businesses that already comply with UK carbon pricing.
What Should UK Businesses Do Now?
Review your EU exports: Identify if your products fall under CBAM scope.
Track embedded emissions: Ensure you can calculate and verify the carbon content of your goods.
Engage with UK and EU consultations: Stay involved in shaping how mutual recognition or alignment will work in practice.
Monitor developments: The UK will introduce its own CBAM in 2027, and alignment with the EU could affect its design.
For more information about CBAM you can check our upcoming training course here or email us international@gmchamber.co.uk to arrange a complimentary 1-2-1 meeting with our CBAM Experts.
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