The Aluminium Federation (ALFED) has called on the UK government to provide greater clarity on the implementation of the UK Carbon Border Adjustment Mechanism (CBAM), warning that significant practical questions remain ahead of its planned introduction in January 2027.

It has submitted an industry briefing to officials across HM Treasury, HMRC, the Department for Business, Innovation, Science and Trade (BIST), and wider government, outlining concerns from the UK aluminium industry over implementation readiness.

ALFED and its members support the principle of a UK CBAM to protect domestic industry from carbon leakage and help create a level playing field. However, the Federation said businesses need greater certainty and sufficient time to prepare for the new requirements.

UK CBAM implementation concerns

Areas requiring further clarity include default emissions values, verification and accreditation arrangements, recognition of carbon costs paid overseas and sector-specific technical guidance.

The briefing draws on discussions through ALFED’s Trade Committee and the experiences of members already navigating the EU CBAM regime.

ALFED Chief Executive Nadine Bloxsome said: “Our members understand the rationale behind CBAM and the importance of addressing carbon leakage, but businesses need certainty if they are going to prepare properly.

“January 2027 is getting increasingly close, and there are still important questions around how the UK scheme will work in practice. Experience from the EU has shown just how challenging implementation can become when methodologies, systems and guidance are finalised too close to the point at which businesses are expected to comply.

“Our message to government is therefore very straightforward: industry needs clarity, practical guidance and sufficient lead time. We want to work constructively with Government to help get this right, but that engagement needs to happen now.”

ALFED calls for implementation roadmap

ALFED is calling on the Government to provide a clear implementation roadmap and proposed default emissions values, alongside greater certainty around verification and accreditation, the treatment of overseas carbon costs and sector-specific technical requirements.

The Federation is also seeking continued technical engagement between Government and affected industries as implementation progresses and is encouraging businesses across the UK aluminium value chain to share their experiences, questions and concerns so these can be fed into government discussions.

Rachel Wiffen, Industry & Skills Development Manager for ALFED, added: “ALFED’s call for greater clarity reflects concerns being felt across the wider manufacturing community. While industry supports measures to address carbon leakage and promote fair competition, businesses require sufficient time to adapt systems, engage suppliers, and understand compliance obligations. Greater certainty around the potential cost impacts of CBAM is critical for commercial planning and the pricing of future contracts. With January 2027 fast approaching, a clear implementation roadmap is urgently needed, alongside ongoing technical engagement, to ensure the UK CBAM is both effective and workable.”

ALFED said it will continue its engagement with government in the coming months and is urging policymakers to provide the certainty businesses need to prepare for the introduction of the UK CBAM in January 2027.