What SMEs need to know about CBAM
Wed Jan 14 2026
The first episode of Made to Grow for 2026 tackles a topic that’s moving fast from “worth keeping an eye on” to a real, practical issue for UK manufacturers: CBAM – the Carbon Border Adjustment Mechanism.
Rich Dale is joined by Rebecca Meadows to explain what CBAM actually means for UK and EU supply chains, why 2026 is the year to prepare, and how better data, systems and reporting can turn regulation into a competitive advantage. If you work in SME manufacturing, import materials like steel or aluminium, or rely on complex supply chains, this episode offers clear, practical manufacturing insights without the usual regulatory fog.
Rebecca Meadows is the Founder and MD of Nexus Earth Group, a sustainability consultancy supporting SME manufacturers. Her work focuses on helping businesses navigate CBAM and other reporting frameworks using accurate Scope 1, 2 and 3 emissions data, improving operational efficiency through smarter energy and production decisions, and connecting manufacturers with grants and support programmes such as those linked to the UK Shared Prosperity Fund. Her core message is simple: carbon compliance should be treated as an opportunity, not a burden.
CBAM is designed to prevent carbon leakage by ensuring imported goods reflect the carbon cost of their production. While CBAM is already live in the EU, the UK version comes into force in January 2027, making 2026 a crucial preparation year. Importers will be responsible for declaring embodied carbon, exporters will be expected to provide reliable data, and poor data or estimates can lead to higher costs and lost contracts.
The episode explores which sectors are currently in scope, including steel, aluminium, cement, fertilisers and hydrogen, and why CBAM is likely to broaden over time. Even manufacturers not directly in scope should expect increasing requests for carbon data from customers and suppliers.
A key theme throughout the conversation is the role of data and systems. Rebecca and Rich discuss why default carbon estimates are expensive, how proper measurement protects margins, and why manufacturing software, MRP systems and digital production data are becoming essential. Bills of materials, supplier data and energy usage all feed into CBAM reporting, while low-cost monitoring and automation can uncover inefficiencies that directly impact the bottom line.
UK CBAM reporting will be managed by HMRC and is expected to operate in a similar way to a tax return, with quarterly submissions. Manufacturers will need reliable supplier data, visibility across supply chains and confidence in the accuracy of their figures.
If you’re an SME manufacturer looking for practical guidance on CBAM, manufacturing software, MRP and future-proofing your supply chain, this episode is a strong place to start.
Tools and resources from Nexus Earth Group: https://www.nexusearthgroup.com/
Subscribe to Made to Grow for more manufacturing insights, business podcast episodes and practical advice for growing manufacturers throughout 2026.
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The first episode of Made to Grow for 2026 tackles a topic that’s moving fast from “worth keeping an eye on” to a real, practical issue for UK manufacturers: CBAM – the Carbon Border Adjustment Mechanism. Rich Dale is joined by Rebecca Meadows to explain what CBAM actually means for UK and EU supply chains, why 2026 is the year to prepare, and how better data, systems and reporting can turn regulation into a competitive advantage. If you work in SME manufacturing, import materials like steel or aluminium, or rely on complex supply chains, this episode offers clear, practical manufacturing insights without the usual regulatory fog. Rebecca Meadows is the Founder and MD of Nexus Earth Group, a sustainability consultancy supporting SME manufacturers. Her work focuses on helping businesses navigate CBAM and other reporting frameworks using accurate Scope 1, 2 and 3 emissions data, improving operational efficiency through smarter energy and production decisions, and connecting manufacturers with grants and support programmes such as those linked to the UK Shared Prosperity Fund. Her core message is simple: carbon compliance should be treated as an opportunity, not a burden. CBAM is designed to prevent carbon leakage by ensuring imported goods reflect the carbon cost of their production. While CBAM is already live in the EU, the UK version comes into force in January 2027, making 2026 a crucial preparation year. Importers will be responsible for declaring embodied carbon, exporters will be expected to provide reliable data, and poor data or estimates can lead to higher costs and lost contracts. The episode explores which sectors are currently in scope, including steel, aluminium, cement, fertilisers and hydrogen, and why CBAM is likely to broaden over time. Even manufacturers not directly in scope should expect increasing requests for carbon data from customers and suppliers. A key theme throughout the conversation is the role of data and systems. Rebecca and Rich discuss why default carbon estimates are expensive, how proper measurement protects margins, and why manufacturing software, MRP systems and digital production data are becoming essential. Bills of materials, supplier data and energy usage all feed into CBAM reporting, while low-cost monitoring and automation can uncover inefficiencies that directly impact the bottom line. UK CBAM reporting will be managed by HMRC and is expected to operate in a similar way to a tax return, with quarterly submissions. Manufacturers will need reliable supplier data, visibility across supply chains and confidence in the accuracy of their figures. If you’re an SME manufacturer looking for practical guidance on CBAM, manufacturing software, MRP and future-proofing your supply chain, this episode is a strong place to start. Tools and resources from Nexus Earth Group: https://www.nexusearthgroup.com/ Subscribe to Made to Grow for more manufacturing insights, business podcast episodes and practical advice for growing manufacturers throughout 2026.