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Carbon import tax could add millions to import bills, says broker

[ March 17, 2026   //   ]

UK importers of carbon-intensive goods could face millions of pounds of extra costs from 2027 under the Government’s forthcoming Carbon Border Adjustment Mechanism (CBAM), according to analysis by Armagh, Northern Ireland-based customs and compliance specialist, Allied Group.

The policy, designed to ensure imported goods face a carbon cost equivalent to that paid by UK producers under the UK Emissions Trading Scheme, will initially apply to imported iron and steel, aluminium, cement, fertilisers and hydrogen.

The analysis suggests that default emissions calculations could add between £400 and £450 per tonne to some carbon-intensive imports.

However, as the UK government has not yet published its final guidance, the projections use established EU CBAM default values as a working proxy.

A typical mid-sized importer of steel or cement bringing in around 5,000 tonnes a year could pay £2m a year extra. A cement importer bringing 2,500 tonnes into the UK each year could incur around £1m in additional annual costs, while a fertiliser importer bringing 1,500 tonnes annually could pay between £600,000 and £675,000 more if default emissions calculations were applied.

Allied says that relying on default emissions values, rather than verified supplier data, could significantly increase the carbon cost exposure facing UK importers once the regime enters its payment phase. The risk is not just paying the carbon charge itself, but paying more than necessary because emissions data has not been properly validated or aligned with customs declarations, it adds.

The European Union has already introduced its own Carbon Border Adjustment Mechanism, currently operating in a transitional reporting phase, requiring importers to submit emissions data without paying the carbon charge. However, importers will be required to purchase and surrender CBAM certificates from April 2027.

Allied Group has launched Allied CBAM, a modelling and compliance service designed to help importers assess potential carbon liabilities ahead of enforcement.

Its team are among the first in the UK and Ireland to complete advanced certification through the International Association for the Carbon Border Adjustment Mechanism, with the organisation accredited under the IACBAM 3003:2025 CBAM Training Provider standard.

The company is also delivering accredited training programmes to help businesses prepare for the new regime, covering issues such as identifying goods within scope, managing supplier emissions data and aligning carbon reporting with existing customs and import processes.

Head of sales Kieran McCann, said: “Most businesses know CBAM is coming, but very few have actually calculated what it could mean for their bottom line. For companies importing steel, cement or fertilisers, the difference between default emissions values and verified supplier data can quickly move into six- or even seven-figure territory.

“What we’re doing is taking real import data, supplier emissions information and commodity classifications and modelling the potential carbon exposure in practical terms. That gives businesses a clear view of their potential liability before the payment phase begins.”

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