Specialist alerts businesses of the upcoming Carbon Border Adjustment Mechanism

The deadline slowly approaches for the introduction of the UK’s Carbon Border Adjustment Mechanism (CBAM), so one of the largest independent VAT advisors in the country, has launched a comprehensive and indispensable new service for businesses.

Known as the CBAM Compass – Helping You Navigate the New Carbon Tax, this new service will provide user-friendly advice and explanation, set out in simple terms what CBAM is, the thinking behind it and how it will impact businesses as the new carbon tax system gets underway in the UK from 1 January 2027.

The CBAM Compass will keep clients up to speed through the use of various media, including regular video and written updates, ensuring they know what they need to know, when they need to know it and what actions they need to undertake now, as well as ‘horizon scanning’ what is coming next in this dynamic and novel area of the indirect tax landscape.

The Glasgow-based firm stresses that companies which engage at an early stage to understand the major cost implications of the new tax, which came into force within the EU on 1 January 2026, will lead the way and gain competitive advantage.

And it points out that companies will be forced to ensure that emissions data is provided and verified to avoid swingeing financial and potentially reputational penalties.

VITA Partner Craig Stobo, who advises UK and international firms on CBAM readiness, said: “The CBAM Compass is designed to alert companies to the potential impact of the EU and the UK’s wide-ranging initiative to drive decarbonisation and promote less carbon intensive manufacturing.

“It is intended to encourage a proactive approach to managing the new tax, which will keep evolving, with more sectors being brought into its scope and reporting requirements set to become more stringent.

“The underlying concept of the new tax is that businesses be incentivised to find other, less carbon-intensive ways of creating their products, but there is no doubt whatsoever that, over time, it will involve less carrot and more stick and boardrooms must be prepared.”

CBAM is designed to put a price on the carbon emissions embedded in imported goods, initially targeting high-emission sectors such as steel, cement, and fertilisers. Its goal is to prevent “carbon leakage” and create a level playing field by aligning costs for imports with existing EU carbon pricing.

The UK Government confirmed in its November 2025 Budget that it will press ahead with implementation of the new rules in 2027 but announced that the inclusion of indirect (Scope 2) emissions in the UK CBAM has been pushed back to 2029 or later.

Craig said: “the exclusion of Scope 2 emissions will reduce the amount of CBAM payable by importers at a time when the UK carbon price is widely expected to rise sharply due to alignment with the EU trading system and the phase-out of free allowances.

“In the first sign that the scope of the UK CBAM could widen over time, the Budget also revealed that the Government is exploring the feasibility of adding refined oil and fuel products to the CBAM in future.

“We are urging companies to begin data collection, supply-chain mapping, and emissions reporting preparations immediately, emphasising that professional guidance will be essential.”

This article was issued via press release as 'Carbon tax specialist sounds alert for businesses with launch of new service on Carbon Border Adjustment Mechanism' by Blueprint Media dated 17 March 2026.

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