Compliance and competitiveness: The case for UK EU alignment
The value of UK exports was £925.5 billion in 2025, up 3.1% on 2024. In 2025, the share of UK goods exports going to the EU was 48.0% compared with 47.2% in 2015. The EU is moving forward on environmental compliance, and alignment is critical to reduce compliance costs and avoid double regulation for UK firms.
Carbon Border Adjustments: Aligning the Price of Carbon
The EU's Carbon Border Adjustment Mechanism (CBAM) is the most prominent attempt to extend domestic climate ambition across borders. CBAM puts a price on the greenhouse gas emissions embedded in certain imports, preventing companies from dodging carbon costs by sourcing from jurisdictions with weaker rules. It initially targets six sectors: cement, iron and steel, electricity, aluminium, fertilisers, and hydrogen with plans to expand to all products under the EU's Emissions Trading System (ETS). From January 2026, importers must purchase CBAM certificates linked to the EU ETS weekly market price.
The UK has announced its own CBAM, due to come into force in 2027, which differs from the EU model in scope and pricing mechanism; adding glass and ceramics but excluding electricity. If multiple regimes demand reporting on different terms and against different timelines, the result will burden importers and suppliers alike. Harmonising measurement, reporting, and mutual recognition of carbon prices offers the practical path forward.
Packaging
The EU's Packaging and Packaging Waste Regulation (PPWR) becomes applicable from 12 August 2026 and aligns regulations across multiple EU jurisdictions. The Regulation sets harmonised requirements across all 27 member states; covering recyclability (from 2028), minimum recycled content in plastic packaging (from 2030), packaging minimisation standards (by 2027), empty-space reduction (from 2028), reusable packaging (from 2030), and importantly labelling (from 2028). Elements of PPWR will apply in Northern Ireland under the Windsor Framework. For businesses trading across multiple EU jurisdictions, such convergence is welcome; managing divergent national rules on packaging compliance across waste streams is costly and complex. Aligned regulation drives investment in circular solutions by giving a single, consistent market signal.
As the UK considers packaging labelling schemes, it would be encouraging to see alignment with EU regulations on this area in particular.
Shared Ambition and Accountability
Carbon pricing and packaging circularity each demonstrate the same principle unilateral action, however ambitious, is diminished when policies diverge across the jurisdictions through which goods, materials, and waste flow. International alignment does not require identical laws, it requires common principles, interoperable frameworks, and mutual recognition of equivalent effort. Achieving net zero will be faster, more durable, and more equitable when nations act together.
How can Beyondly support?
As the demand for greater sustainability reporting and performance grows, Beyondly’s Sustainability Strategy assesses your current sustainability position, identifies key opportunities and risks, and sets clear priorities and practical next steps; helping you stay ahead of upcoming regulation and enhance your environmental performance.
If your organisation is obligated under PPWR, Beyondly is here to help you navigate the evolving legislation with confidence; empowering you with the tools and expertise to meet your obligation and maintain your EU market access, through our PPWR Readiness Assessment.
