EU Climate Commissioner Wopke Hoekstra’s emphasis on proceeding “step by step” and “doing things in the right order” reveals a prioritization of proper procedures over speed in carbon border negotiations with the United Kingdom. This methodical approach, while potentially ensuring thoroughness, has meant British exporters cannot avoid facing documentation requirements from January.
Brussels has confirmed that the anticipated carve-out from the carbon border adjustment mechanism will not be implemented by year-end, with industry experts predicting no relief before Easter 2025. Commissioner Hoekstra’s statement that negotiations must proceed “chiffre par chiffre, pas à pas” (figure by figure, step by step) underscores the EU’s commitment to methodical processes even when faster timelines might benefit UK businesses.
The mechanism requires comprehensive documentation of carbon emissions throughout manufacturing processes, affecting approximately £7 billion in UK exports. Commissioner Hoekstra has indicated that negotiations must first establish terms of reference before moving to substantive discussions on emissions trading system compatibility—a sequential approach that prevents rapid resolution even when both parties are motivated to reach agreement.
Manufacturing organizations express understanding of procedural necessities while warning of impacts on businesses. Make UK describes the forthcoming paperwork as “extensive,” while UK Steel highlights particular concerns for small and medium-sized enterprises that must navigate documentation requirements regardless of ongoing negotiations. The step-by-step approach may ensure eventual agreement quality but provides no immediate relief for businesses facing January deadlines.
Government representatives are advising businesses to prepare for implementation from January, with support available through the Department for Business and Trade. The two-stage negotiation process Commissioner Hoekstra outlined will proceed methodically toward a potential carbon linking agreement. Although actual tax payments won’t be required until 2027 and could potentially be cancelled through successful negotiations, businesses must immediately begin implementing documentation systems in January. Commissioner Hoekstra has characterized discussions with UK officials as productive and suggested immediate costs will be minimal given Britain’s decarbonization progress, but the emphasis on proper sequential procedures means businesses cannot await negotiation outcomes before implementing compliance systems. The UK government continues working through the step-by-step process while businesses prepare for immediate requirements.