CBAM: How Should Your Business Prepare?

In this episode, Harriet Trewin and Jo Gilbertson from AIC’s fertiliser sector join Wendy Ford, AIC Communications Manager, to discuss the Carbon Border Adjustment Mechanism (CBAM) and what it could mean for fertiliser businesses, farmers and the wider agricultural supply chain.

We explore why CBAM is being introduced, how it is intended to address carbon leakage and create a fairer balance between UK-produced and imported goods, and why its success will depend on the scheme being practical, predictable and proportionate.

We cover: What the Carbon Border Adjustment Mechanism is, why it is being introduced and the issue of carbon leakage it is intended to address. Why nitrogen fertilisers fall within CBAM’s scope and how additional carbon-related costs could affect fertiliser pricing, availability and the wider agricultural supply chain. What remains uncertain, including free allowances, default emissions values and the information businesses will need to calculate their potential liability. How businesses can begin preparing by checking commodity codes, establishing who is legally responsible as the importer, improving record-keeping and speaking to suppliers about verified emissions data. How AIC’s CBAM calculator can help Members model different scenarios and develop an indicative range of potential costs while key policy details remain outstanding.

As Harriet Trewin explains, “Prepare as much as you can.” Although important details remain uncertain, businesses can take action now to understand their supply chains, gather emissions information and identify where potential risks may arise.

This episode is ideal for fertiliser importers, manufacturers, distributors, agricultural businesses and anyone who wants to understand CBAM, its potential implications and the practical steps businesses can take ahead of its planned introduction on 1 January 2027.