ALFED calls for urgent UK CBAM clarity ahead of 2027 deadline

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The Aluminium Federation (ALFED) is urging the UK Government to clarify the Carbon Border Adjustment Mechanism (CBAM) as we approach its launch on 1 January 2027. They’re sounding the alarm that aluminium businesses need ample time to get ready for the new compliance requirements.

In a briefing sent to HM Treasury, HMRC, and the Department for Business, Innovation, Science and Trade (BIST), ALFED raised concerns about emissions calculations, verification processes, accreditation needs, and how carbon costs paid abroad will be recognized.

While they back the idea of CBAM to prevent carbon leakage and ensure a level playing field for UK manufacturers, the Federation cautioned that confusion over technical guidance and the interplay between UK and EU emissions trading systems could make things tricky during implementation.

Drawing insights from discussions with its Trade Committee and members who are already dealing with EU CBAM requirements, ALFED is calling for a clear roadmap for implementation and ongoing dialogue between the government and industry.

Nadine Bloxsome, Chief Executive of ALFED, stated:

“Our members get why CBAM is necessary and the need to tackle carbon leakage, but they need certainty to prepare effectively.”

The Federation emphasized that manufacturers and businesses across the aluminium supply chain need enough time to adjust their systems, connect with suppliers, and evaluate potential compliance costs.

Rachel Wiffen, Industry & Skills Development Manager at ALFED, added:

“Having clearer insights into the potential cost implications of CBAM is vital for commercial planning and setting future contract prices.”

Since ALFED shared its briefing in August 2026, HMRC has rolled out default emissions values and technical guidance on emissions monitoring, reporting, and verification. These documents, released on 16 October 2026, offer additional support to help businesses gear up for the scheme.

ALFED is reaching out to organizations throughout the UK aluminium sector, urging them to voice their concerns and share their real-world experiences. This feedback will help shape future conversations with the government.

The Federation believes that strong collaboration and well-defined regulatory guidelines are crucial for making sure the UK CBAM not only bolsters industrial competitiveness but also tackles the issue of carbon leakage effectively.