The Door & Hardware Federation (DHF) is encouraging manufacturers and importers across the construction and hardware supply chain to begin preparing for the introduction of the UK’s Carbon Border Adjustment Mechanism (CBAM), which comes into force on 1 January 2027.
CBAM is a carbon reporting and taxation framework designed to address emissions linked to imported goods. The scheme will operate alongside the UK Emissions Trading Scheme (UK ETS) and apply a carbon price to selected imported products to align carbon costs between imported and domestically manufactured goods.
The UK Government has confirmed that the initial scope will apply to sectors including aluminium, cement, fertilisers, hydrogen, and iron and steel, with goods identified at commodity code level. Businesses importing £50,000 or more of CBAM goods within a 12-month period will be required to register.
Michael Skelding, General Manager and Secretary of DHF, said: “The introduction of CBAM represents a significant shift in how carbon accountability will operate across international trade and manufacturing.
“While the initial scope is focused on upstream materials and high carbon sectors, the effects will inevitably filter down through construction supply chains, including the door, hardware and security sectors. Manufacturers and importers throughout the supply chain will increasingly be asked to demonstrate transparency around embodied carbon and sourcing practices.”
CBAM has been introduced to reduce so-called “carbon leakage”, where manufacturing moves to countries with less stringent climate regulations. The mechanism also aims to encourage lower-carbon manufacturing globally and improve emissions transparency across supply chains.
Skelding added: “Carbon reporting, verification and supply chain transparency are becoming central to doing business within construction and manufacturing. DHF will continue supporting members by monitoring developments closely and providing guidance as further detail emerges.”
Under the UK framework, importers will be able to reduce the UK tax payable where imported goods have already been subject to a recognised carbon pricing scheme, such as the EU CBAM, provided appropriate verification documentation is available.
