UK CBAM: Breedon calls for urgent action to level the playing field for UK cement

“Backing British Cement”

Breedon Group, (‘Breedon’ or ‘the Group’), a leading vertically-integrated construction materials group in Great Britain, Ireland and the United States, today calls for urgent action to ensure a fair and effective outcome for domestic cement producers ahead of the introduction of the UK CBAM on 1 January 2027 (and in response to HMRC’s technical consultation on draft regulations for the UK’s Carbon Border Adjustment Mechanism (CBAM)).

As a leading provider of cement in Great Britain and the largest British-based domestic manufacturer, the FTSE250 listed Group has campaigned alongside the Mineral Products Association (the trade association for mineral products, including cement) to raise the profile of this foundation industry and advocate for its key role in our national security and economic prosperity, supporting British jobs, supply chains and decarbonisation.

Within its response, Breedon highlighted five priority asks for further action:

1. Early visibility and industry engagement on how the CBAM rate will work in practice
Breedon calls for publication of CBAM rates and default values as early as practicable in 2026, including early visibility on cement-specific methodology development, supported by non-binding guidance.

2. Closing the electricity cost gap facing UK producers
Breedon asks for the cement industry to be part of the current and future EII (Energy Intensive Industry) compensation scheme to address the higher electricity costs faced by UK cement producers, when compared to non-UK producers, which are not addressed by the CBAM.

3. Ensuring default emissions values do not favour high-carbon imports
Breedon cautions that poorly calibrated “default values” could allow higher-carbon imports to underpay for their emissions.

4. Preventing under-reporting and mislabelling of imported cement
Breedon urges the Government to strengthen product classification, verification and enforcement to ensure imports are accurately assessed and do not gain an unfair advantage over UK production.

5. Strong monitoring and enforcement from day one to ensure CBAM works as intended
Breedon calls for real-time monitoring of import trends and clear contingency measures if carbon-intensive imports increase as well as the need for robust enforcement of registration thresholds.

Rob Wood, Chief Executive of Breedon said:

“Breedon welcomes the introduction of a UK CBAM as a critical step in addressing carbon leakage and ensuring UK manufacturers are not undercut by higher-carbon imports. However, key elements of the UK CBAM scheme remain unclear just months ahead of planned implementation in January 2027, risking continued pressure on UK cement production and the Government’s ambitions to deliver 1.5 million new homes, whilst jeopardising investment in low-carbon technologies to meet the UK’s net zero ambitions.

“A robust Carbon Border Adjustment Mechanism is therefore a vital element in securing domestic production in an increasingly insecure world whilst protecting British jobs and delivering economic growth.”

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