The Government has proposed a new carbon tax on imported products; the Carbon Border Adjustment Mechanism (CABM). It is designed to drive down emissions in key energy intensive sectors such as glass, ceramics and iron and steel. Although most of this will impact your UK suppliers manufacturing finished goods, it will also affect you directly where you are importing products such as tiles, ceramic sinks and glassware for sale.

The tax will be introduced from January 2027 and the Government is currently consulting on how it will be administered. We will be responding, but considering the complexity of the text I have written a summary of the consultation to give an overview of CBAM and key questions to help us respond.

We are also liaising with the Treasury who are introducing the tax and plan to have a call with them to give you further background on the tax and allow you an opportunity to ask questions from the perspective of your business and supply chains.