Open Consultation: UK CBAM Draft Regulations on Emissions and Verification

As the UK prepares for its carbon border tax to take effect on January 1, 2027, HM Revenue & Customs (HMRC) has launched a crucial technical consultation. Following earlier consultations that covered general administrative requirements and carbon price relief, this new batch of draft secondary legislation focuses heavily on the technical aspects of how carbon data will be calculated and validated.

To ensure the policy operates effectively, HMRC is explicitly seeking feedback from UK importers, overseas producers, and international accreditation bodies.

"The draft secondary legislation includes the legislative requirements associated with the administration of the tax, including but not limited to: embodied emissions, [and] monitoring and verification of emissions data."

If you import goods from the covered sectors (aluminum, cement, fertilizers, hydrogen, and iron and steel) or operate as an overseas producer, these drafts dictate exactly how you will need to measure, report, and verify your carbon footprint. The consultation includes highly technical files, such as the draft "System Boundaries" document and the "Force of Law Notice."

Stakeholders have until 11:59 pm on May 21, 2026, to review the legislation and submit their feedback directly to the CBAM Policy Team at HMRC to help shape the final rules.