NAA Event Review: Wincanton Webinar – Carbon Border Adjustment Mechanism
Our most recent webinar was hosted by NAA member Wincanton with Salvatore Sivieri (Sal), Head of Customs and Excise providing an update on future EU & UK regulations around Carbon Border Adjustment Mechanism (CBAM).
Sal provided an EU CBAM Overview – it is part of the European Green Deal: Goal of carbon neutrality by 2050, and targets carbon-intensive imports (e.g., steel, aluminium). It also prevents carbon leakage by applying a carbon price to imports and works alongside the EU Emission Trading System (ETS).
In terms of a timeline, the legislation was adopted on May 16, 2023, with a transition period from Oct 1, 2023 – Dec 31, 2025, and full Implementation from Jan 1, 2026 – Dec 31, 2034.
Sal then provided an overview of the Omnibus Package (Feb 26, 2025), which simplifies CBAM reporting and exempts consignments < €150 or < 50 tonnes/year. This however still requires exemption declaration, but reduces burden for ~90% of importers.
Sal then gave an overview of UK CBAM Policy, which was announced in Dec 2023, with a transition phase: Jan 1, 2026. The charge phase is due to start on Jan 1, 2027 (after consultations) and sectors covered are aluminium, iron & steel, cement, hydrogen, fertilisers. There will be small importer exemptions (< £50,000/year in CBAM goods). There is also mandatory registration within 30 days for > £50,000/year and criminal penalties for non-compliance.
In terms of impact on the Automotive Sector, even if not directly importing, the supply chain uses materials covered (aluminium, steel).
Sal then explained that CBAM applies indirectly via supplier emissions.
Types of emissions were then summarised as follows:
• Direct: Emitted during production.
• Indirect: From electricity used in production.
• Embedded: Total of direct + indirect + precursor emissions.
Sal also explained that Default Values can be used if real data unavailable, however these are conservative, may be costlier, particularly for High-Emission Countries (e.g., China, India, Ukraine).
Key industry challenges were then highlighted as follows:
• Complex automotive supply chains.
• Difficulty in emission data collection, especially from high-emission countries.
• Low awareness and lack of readiness.
• Need for investment in IT/compliance systems.
Sal then explained that support is available from Wincanton, who offer CBAM consultancy; HS code checks; registration and quarterly declaration support; staff training packages.
A copy of the presentation slides is available on request.
