The UK faces a pivotal moment in global trade at the beginning of next year. With the EU Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation entering into force 1 January 2026, and the UK’s own CBAM due by 2027, the challenge is clear: how do we ensure these new regulations become enablers of growth rather than another layer of red tape?
The answer lies in building a national digital platform to handle initiatives like a UK CBAM. This will not only streamline compliance for UK businesses but also unlock opportunities in data-driven trade, supply chain decarbonisation and competitive advantage.
Learning from the EU CBAM
The EU CBAM is designed to prevent “carbon leakage” and properly price the carbon embedded in goods imported into the EU. It works by imposing a levy on the embedded carbon emissions of certain goods such as cement, steel, aluminium, fertilisers, hydrogen and electricity. It seeks to equalise the cost of carbon so that the carbon cost of imports is equivalent to that of goods produced in the EU.
Since 2023, the EU CBAM has been in a “transitional” period whereby importers have reporting obligations but are not liable for paying for the cost of the embedded carbon. That will change on 1 January 2026 as the CBAM payments take effect.
For an initiative of this scale and complexity to succeed, it must be supported by a robust, intelligent and user-friendly digital platform. As a global leader in digital transformation, Netcompany has been at the forefront of this effort, leading a consortium to develop the software platform that makes CBAM a reality.
This project has not just been about building a standalone system; we created an ecosystem that can adapt to changing regulations as the EU CBAM evolves, while providing a seamless experience for all stakeholders from customs officers to importers.
The EU CBAM platform we’ve helped to design and build will provide a comprehensive suite of functionalities including:
· Declarant application management and reporting: A streamlined interface for importers to manage their declarations and submit reports on embedded emissions
· Comprehensive risk management tools: Ensuring compliance and enabling authorities to identify and address potential issues efficiently
· Certificate trading platform: A transparent system for importers to purchase and surrender CBAM certificates, reflecting the price of allowances under the EU ETS
· Back-office administration portals: To be used by the EU National Competent Authorities and EU officials
· Advanced statistics and analytics modules: To drive informed decision-making
The platform will also advance new functionality, as the EU CBAM develops to include important considerations that the European Commission is currently consulting on: including the methodologies for calculating embedded emissions, how to account for carbon price paid in third countries and what to do when accurate supplier embedded emissions data is not available.
Why the UK must act now
The UK’s CBAM proposal is among the most advanced globally, and is set to be introduced in 2027. But the lesson from Europe is clear: regulation alone is not enough.
Without an integrated digital platform at its core, the UK risks creating unnecessary burdens for its businesses, increasing trade friction and falling behind international competitors.
A national UK CBAM Digital Platform, integrated with existing customs processes and trade systems, will be the deciding factor in whether CBAM is seen as a barrier or an opportunity. It will:
- Simplify compliance for UK businesses
- Provide data-driven insights into supply chains
- Support decarbonisation investments
- Strengthen UK competitiveness in global markets
Beyond compliance: turning CBAM into opportunity
For businesses, the need to accurately report and manage carbon emissions is not only a significant challenge, but also a major opportunity. A digital-first approach enables companies to harness data analytics and AI to gain competitive advantage. For example:
- Trade analytics can give SMEs personalised insights into new markets
- Automated systems can notify businesses of tariff changes or regulatory updates
- Supply chain emission data can identify hotspots and drive investment in greener production
This is not just about meeting reporting obligations – it is about creating a new digital foundation for UK trade, where compliance fuels innovation and growth
Bold step forward
The EU CBAM is a bold step towards a greener, more sustainable future for global trade.
The UK now has an opportunity to go further: by placing a digital platform at the centre of its CBAM, it can protect businesses from unnecessary burden, empower them with data-driven tools and lead the world in digital green trade.
Netcompany’s experience in building the EU CBAM platform shows that this vision is achievable. Now is the moment for the UK to ensure CBAM is not just another cost, but a catalyst for opportunity.
You can learn more from Netcompany, when partner Damien Venkatasamy speaks on the Chartered Institute's free webinar: 'UK trade policy and AI: Shaping the future of UK trade', held at 12pm, 30 September. Book to attend here.
