Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) is a major climate policy being rolled out by the European Union to put a carbon price on imported goods.

While aspects of CBAM may impact the wider industry, this guidance is particularly relevant to DHF Building Hardware members involved in products or components containing steel, aluminium, iron, or related fixings.

CBAM aims to prevent "carbon leakage" by ensuring that products manufactured in countries with less strict carbon laws do not have an unfair
competitive advantage over EU-produced goods.
• The transitional phase of CBAM began in October 2023 and requires data reporting without financial adjustments
• The UK Government is developing its own CBAM system, with implementation expected from 2027 following stakeholder consultations

Key materials affected 

CBAM initially targets carbon-intensive materials,
many of which are central to DHF member
products, including:
• Steel
• Aluminium
• Iron

Implications for DHF members

• Manufacturers importing materials such as aluminium profiles, steel doorset components, or fixings may see higher costs if suppliers operate in high-carbon regions
• UK-based exporters of products like doorsets, garage doors, or hardware to the EU will be expected to provide data on embedded emissions
• Clients and contractors in the EU may request verified carbon footprint data or Environmental Product Declarations (EPD) to meet their own reporting requirements

How to prepare

• Begin assessing the carbon intensity of your supply chain
• Begin working with suppliers who can provide low-carbon or certified raw materials
• Develop or update EPD or product car
• Consider subscribing to carbon accounting platforms or engaging a sustainability consultant to streamline data collection and verification

Strategic benefit

Early preparation for CBAM can protect marketaccess, strengthen relationships with EU clients, and position your business as a forward-thinking, climate-responsible manufacturer. CBAM is a pivotal element of Europe’s Green Deal and will reshape global trade. By aligning now, DHF members can future proof their operations and leverage sustainability as a differentiator.

Preparing for CBAM and increasing sustainability reporting requirements?
Environmental Product Declarations (EPDs) can help businesses provide verified environmental data for products and materials, supporting supply chain transparency and evolving market expectations. 
DHF members can access support with Environmental Product Declarations (EPDs) as a benefit of their membership.