CBAM for UK SMEs
- Adelle Sanderson
- Nov 25, 2025
- 3 min read
What It Means, What to Do, and Why It Could Cost You
Many SMEs are only just hearing about the Carbon Border Adjustment Mechanism, often because a client or supplier has suddenly asked for carbon data they have never collected. It is a familiar story for busy teams who juggle visibility, admin and compliance on top of the day job.
CBAM is the EU’s new system for applying a fair carbon price to imported goods. It affects steel, aluminium, cement, fertilisers, electricity and hydrogen. If you work with these materials or sit within a wider supply chain that does, it is worth taking a moment to understand how it could affect your business.
At Dellsche, we keep compliance simple, practical and manageable. We help you understand what matters so you can plan with confidence and avoid any last minute surprises.
What CBAM actually is
CBAM is part of the EU’s climate strategy. It ensures imported goods are priced fairly against EU products that already carry carbon costs. To do that, it requires businesses to collect and report emissions data linked to their imports.
Large manufacturers such as Tata Steel and ArcelorMittal have already adapted their reporting because clients now expect clear carbon information at every stage. Many UK suppliers and contractors are now being asked to follow suit.
Why this matters for UK SMEs
Even if you do not import directly, you may still be affected through your supply chain, tender requirements or client expectations.
CBAM can influence:
Material cost
Pricing and margins
Supplier choices
Tender eligibility
How clients view your environmental performance
When suppliers cannot provide verified emissions data, businesses must rely on default carbon values. These defaults are often higher, which can increase the projected cost of imports and affect pricing and margins.
Understanding your exposure and early helps you protect your margins and stay competitive.
A simple checklist* to get started
If you are unsure whether CBAM applies to your business, this quick checklist will help you understand what to look for.
Check which materials you use
If you work with steel, aluminium, cement, fertilisers, electricity or hydrogen, look at where they come from.
Ask suppliers for verified emissions data
Clean data lowers future CBAM costs. If suppliers cannot provide it, the EU assigns higher default values.
Keep simple internal records
Quarterly reporting has already started. Even basic records put you ahead of many competitors.
Plan for 2026
From 2026, CBAM certificates will be purchased based on the carbon footprint of your imports. Early planning helps you absorb or offset any future cost.
Review your supply chain
Consider lower carbon suppliers or recycled materials where possible.
This does not need to be overwhelming. Small steps now will save you time, money and stress down the line. Download FREE Checklist*
How Dellsche supports you through the process
Compliance is one of our core pillars. We help you stay organised and consistent without unnecessary complexity.
We can support you to:
Understand whether CBAM applies to your current operations
Communicate carbon data requirements clearly to suppliers
Build internal documentation and tidy your record keeping
Review and map your supply chain to spot issues early
Prepare for the financial side of CBAM and plan your options
Useful resources
Final thoughts
CBAM can feel like another layer of paperwork but it is becoming a standard part of working with EU suppliers and clients. Early preparation avoids stress later and keeps your business competitive, organised and contract ready.
At Dellsche, we take the pressure off by making compliance clear and practical.
Give us a shout! Just let us know what you need and we will take it from there.
Get in touch
📧 Email: info@dellsche.com
🌐 Website: www.dellsche.com
📍 Based in Lincolnshire, supporting clients nationwide
Follow us on socials @dellsche_bc for tips, updates and practical business support.
*This checklist is intended as a practical starting point only and does not replace specialist advice. Subject to Dellsche Business Consultancy Limited terms and conditions.
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