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Draft Regulations: Carbon Border Adjustment Mechanism Emissions and Verification

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Summary

HMRC has published draft secondary legislation for the UK Carbon Border Adjustment Mechanism (CBAM), covering emissions monitoring and verification requirements. The consultation seeks feedback on embodied emissions provisions, monitoring standards, and verification procedures for UK importers of aluminium, cement, fertilisers, hydrogen, and iron and steel goods from 1 January 2027. Responses are due by 21 May 2026.

What changed

HMRC has published draft secondary legislation for the Carbon Border Adjustment Mechanism covering emissions monitoring, verification, and embodied carbon reporting requirements. The draft regulations establish the framework for how UK importers of CBAM goods must monitor and report actual emissions data, including requirements for overseas producers and accredited verifiers.\n\nUK importers of aluminium, cement, fertilisers, hydrogen, and iron and steel products should review these requirements carefully as CBAM takes effect on 1 January 2027. Overseas producers exporting to the UK may also be affected if UK importers request actual emissions data rather than default values. Businesses should engage with the consultation process to ensure the legislation delivers practical and workable compliance obligations.

What to do next

  1. Review draft CBAM emissions and verification regulations
  2. Assess monitoring and verification obligations for affected goods
  3. Submit consultation response to cbampolicyteam@hmrc.gov.uk by 21 May 2026

Archived snapshot

Apr 9, 2026

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Open consultation

Draft regulations: Carbon Border Adjustment Mechanism (CBAM) (Emissions and Verification)

From: HM Revenue & Customs Published 9 April 2026 Get emails about this page

Summary

This technical consultation seeks comments on the draft secondary legislation for the Carbon Border Adjustment Mechanism (CBAM)

This consultation closes at
**
11:59pm on 21 May 2026
**

Consultation description

This technical consultation sets out some of the draft secondary legislation that will come into effect on 1 January 2027 alongside Carbon Border Adjustment Mechanism (CBAM) being introduced.

This is in addition to other draft secondary legislation (setting out details of the administrative requirements, CBAM rate and carbon price relief) which was open for consultation until 24 March.

The aim is to gather feedback from stakeholders on the drafting of the secondary legislation to ensure that they deliver the policy correctly and effectively for the tax to operate as intended and provide for administrative matters.

A draft of the Notice which will have force of law is also being published to support understanding of how all of the CBAM legislation will read together. This document is not formally part of the consultation however if you have feedback on it, this can also be shared.

You can also read the policy summary document for further information on how CBAM will operate.

The draft secondary legislation includes the legislative requirements associated with the administration of the tax, including but not limited to:

  • embodied emissions
  • monitoring and verification of emissions data
    This is of interest to:

  • UK importers of goods from the aluminium, cement, fertilisers, hydrogen, and iron and steel sectors and downstream producers that use these goods in their supply chains

  • overseas producers of CBAM goods for export to the UK

  • overseas accreditation bodies and verifiers of emissions, who will be impacted by the legislation if overseas producers choose to monitor the actual emissions they produce

  • respondents to the previous consultation

  • international partners with an interest in CBAM policy
    Any responses to or queries about this consultation should be sent by email to cbampolicyteam@hmrc.gov.uk, using the subject line ‘ CBAM technical consultation response’ and clearly referencing the relevant parts of the legislation.

Background

The government confirmed on 30 October 2024 that a UK CBAM will be introduced on 1 January 2027 and published primary legislation in Finance Act 2026.

CBAM will place a carbon price on specified goods imported to the UK from sectors that are at risk of carbon leakage. It takes effect from 1 January 2027.

Further details can be found in the policy summary document.

Documents

The Carbon Border Adjustment Mechanism (Emissions and Verification) Regulations 2026 (Draft)

PDF, 389 KB, 10 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.


The Carbon Border Adjustment Mechanism (Emissions and Verification) Force of Law Notice (Draft)

PDF, 1.64 MB, 106 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.


The Carbon Border Adjustment Mechanism System Boundaries document (Draft)

PDF, 362 KB, 24 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.


Ways to respond

Email to:

cbampolicyteam@hmrc.gov.uk

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Named provisions

Embodied emissions Monitoring and verification of emissions data

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Last updated

Classification

Agency
HMRC
Comment period closes
May 21st, 2026 (37 days)
Compliance deadline
January 1st, 2027 (262 days)
Instrument
Consultation
Legal weight
Non-binding
Stage
Consultation
Change scope
Substantive

Who this affects

Applies to
Importers and exporters Manufacturers Energy companies
Industry sector
2120 Mining 3241 Chemical Manufacturing 3311 Iron and Steel Manufacturing
Activity scope
Carbon emissions monitoring Emissions verification Import carbon reporting
Geographic scope
United Kingdom GB

Taxonomy

Primary area
Environmental Protection
Operational domain
Compliance
Topics
International Trade Energy Taxation

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