Carbon Border Adjustment Mechanism (CBAM) for Northern Ireland businesses
Last updated: 6 March 2026
The Carbon Border Adjustment Mechanism (CBAM) is an EU system, introduced in 2023 and fully in place from 2026. It applies a carbon cost to certain imported goods so they face the same climate‑related charges as goods produced in the EU. A UK CBAM will follow in 2027. This is relevant for Northern Ireland businesses trading with both the EU and the UK, as they may be affected by both CBAM systems.
Which goods are covered under CBAM?
CBAM currently applies to highly carbon‑intensive goods such as iron and steel, aluminium, cement, fertilisers, hydrogen and – for the EU only – electricity. Even if Northern Ireland businesses are not the importer of record, EU customers now require emissions data from NI suppliers to meet their reporting obligations. From 2027, NI businesses importing CBAM goods from outside the UK or EU will need to register with HM Revenue & Customs (HMRC), collect verified emissions data, and pay a UK CBAM levy.
What data do NI businesses need to provide?
CBAM compliance depends on accurate emissions data, including direct emissions, electricity use, and emissions from precursor materials. Preparing early — by checking your commodity codes (CN codes), gathering emissions data from suppliers, and setting up record‑keeping — will help NI businesses stay competitive and avoid higher costs from default carbon values.
CBAM guidance, toolkit and resources for businesses
This guidance from Invest Northern Ireland explains the EU and UK Carbon Border Adjustment Mechanism (CBAM) rules. It outlines what information you need to collect, who you need to share it with, and the key dates to plan for.
The guidance also provides a practical toolkit — including checklists, carbon calculators, and templates — to help you prepare and manage the process more easily.
- Tool 1: The decision tree (PDF, 374KB): a flowchart to help you decide if your product is in scope. You follow the arrows: does my product have a CN code on the list? Am I importing or exporting? It tells you in under a minute whether you need to act.
- Tool 2: CN code look-up (XLS, 197KB): a searchable Excel spreadsheet with every in-scope commodity code. Type in your code, and it tells you whether it's covered.
- Tool 3: Emissions calculator (XLS, 202KB): input your supplier's data, and it calculates the embedded emissions per shipment, including the precursor "bubble" calculation.
- Tool 4: Evidence pack structure (DOC, 202KB): A checklist of documents you must save for every shipment (Invoice, Mill Cert, etc.). It provides the folder template and checklist so you can copy the folder structure to your shared drive.
- Tool 5: Supplier data request template (DOC, 21KB): A pre-written email and form to send to your overseas suppliers to ask for carbon data. The template covers all the fields required by the regulations.
- Tool 6: Cost modeller (XLS, 209KB): A financial planning tool to estimate your potential tax liability in 2027 based on different carbon price scenarios.