As environmental concerns continue to grow, so too does the regulatory landscape for businesses in the manufacturing, transport, and logistics sectors. Staying compliant with current and upcoming regulations is essential to avoiding penalties and remaining competitive.

One of the biggest developments on the horizon is the Carbon Border Adjustment Mechanism (CBAM), a regulation from the EU that will impose tariffs on high-carbon goods. For UK manufacturers, this could mean higher costs for products that rely on carbon-heavy imports from Europe(1).

To avoid CBAM penalties, UK companies will need to adopt cleaner production methods or source materials with a lower carbon footprint. This regulation creates a strong incentive for businesses to shift toward greener manufacturing practices and supply chains.

For the transport and logistics sectors, the UK government’s push towards net-zero emissions by 2050 is driving a range of new rules. The path to  zero strategy outlines strict emissions standards for vehicles, with a ban on new petrol and diesel cars by 2030(2).

For logistics companies, this means transitioning to electric or alternative-fuel fleets or facing potential penalties. With new emission standards for road transport coming into play, those who delay may risk falling behind their more sustainable competitors.

The logistics industry will also be impacted by the Extended Producer Responsibility (EPR) regulations, which aim to make companies more responsible for the waste and environmental impact of their products. New packaging rules will likely push businesses to adopt more eco-friendly alternatives(3).

These regulations may present challenges, but they also offer businesses the chance to innovate and future-proof their operations. By embracing sustainability, companies in manufacturing, transport, and logistics can reduce risks, lower costs, and enhance their market position.

Bibliography

1 Carbon Border Adjustment Mechanism (Accessed May 2025) https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en

2 Government sets out path to zero emission vehicles by 2035 (Accessed May 2025) https://www.gov.uk/government/news/government-sets-out-path-to-zero-emission-vehicles-by-2035

3 Extended producer responsibility for packaging: who is affected and what to do (Accessed May 2025)https://www.gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do