Why CBAM Matters For University Estates

While the direct obligations under UK Carbon Border Adjustment Mechanism (CBAM) will fall primarily on importers of construction products, the effects are likely to be widespread. Higher education institutions planning major estate projects should therefore consider now whether their budgets, supply chains, sustainability objectives, procurement processes and contractual arrangements are prepared for the changes that CBAM may bring from 1 January 2027.

Background

CBAM will come into force on 1 January 2027 and will apply to certain imported goods, namely aluminium, cement, fertiliser, hydrogen, and iron and steel. It forms part of the UK's wider strategy to support decarbonisation and prevent carbon leakage; where production of carbon-intensive goods shifts to countries with less stringent carbon pricing requirements compared to that borne by UK manufacturers. As many of the products within scope are commonly used in construction projects, the introduction of CBAM may have