Carbon Border Adjustment Mechanism (CBAM)
The UK Carbon Border Adjustment Mechanism (CBAM) will take effect from 1 January 2027, placing a carbon price on the emissions embodied in specified goods imported into the UK, including fertilisers. It is intended to ensure that carbon-intensive imports face a carbon price comparable with UK production and to reduce the risk of emissions being displaced overseas as UK industries decarbonise.
CBAM will apply across the whole of the UK, including Northern Ireland, and will cover specified goods in the aluminium, cement, fertiliser, hydrogen, and iron and steel sectors.
Businesses importing £50,000 or more of specified CBAM goods over a 12-month period may be directly affected. The CBAM charge will be based on the direct emissions embodied within imported goods, with businesses able to use verified actual emissions data or Government default values. Carbon Price Relief may also be available where qualifying carbon pricing has already been applied overseas.
Guidance for AIC Members
AIC has developed a detailed members-only FAQ for fertiliser businesses covering product scope, registration requirements, calculating CBAM liability, emissions data, Carbon Price Relief, customs arrangements and record keeping.
AIC will continue to interpret Government guidance, explain what developments mean specifically for fertiliser businesses, provide practical information to support implementation and represent members in discussions about a fair and workable process.
AIC Members can log in below to access the full FAQ. For further information, please contact Harriet Trewin, AIC's Head of Fertiliser.
