CBAM: What does it mean for the fenestration industry?
CBAM (Carbon Border Adjustment Mechanism) is a carbon pricing system applied to certain goods imported into the UK and EU. Its purpose is to ensure that imported products are subject to similar environmental costs as those produced locally. In doing so, it aims to prevent carbon leakage, where companies source materials from countries with lower environmental standards in order to cut costs.
For businesses involved in fenestration, the most significant impact will be on aluminium and steel. Under CBAM they may carry additional costs and administrative requirements if imported from outside the UK or EU.
Aluminium and steel are key materials specifically listed within the CBAM categories. However, it is important to highlight that several commonly used materials in the fenestration sector are currently exempt. These include glass (including Insulated Glass Units), PVCu, and timber. While this offers some reassurance, companies should remain alert, as future updates to CBAM could potentially expand its scope. Glass was previously proposed for inclusion during the consultation period but was later removed from the initial scope. It may still be considered in future updates.
There are two important timelines that businesses need to be aware of:
EU CBAM – Fully implemented from 1 January 2026.
UK CBAM – Scheduled to begin from 1 January 2027.
Although smaller businesses may benefit from exemption thresholds if their imports fall below certain costs, we recommend looking at chapter 9 in the factsheet.
At this stage, there is no immediate need for alarm, but early preparation will put businesses in a stronger position. Three simple steps can help organisations get ready:
Check your supply chain – Understand where your aluminium and steel originate from, including any indirect sourcing through suppliers.
Understand your imports – Keep track of the quantity, value, and frequency of imported materials.
Speak to suppliers – Engage proactively with suppliers to confirm whether they can provide the required carbon emissions data.
These actions will not only help with compliance but also improve overall visibility and resilience within your supply chain.
CBAM is ultimately about encouraging sustainability, transparency, and fair competition. While the introduction of additional paperwork and potential costs for imported materials may present challenges, it also creates opportunities. There is potential for increased demand for UK and EU-based manufacturers who already meet stricter environmental standards.
By staying informed, building a clear understanding of supply chains, and exploring more local sourcing options, fenestration businesses can turn what may initially appear as a regulatory burden into a strategic advantage.
All details and full access to the CBAM factsheet can be found here:
Factsheet: Carbon Border Adjustment Mechanism – GOV.UK
The GGF will continue to monitor developments and update members as further clarification emerges on the Carbon Border Adjustment Mechanism.
