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

The UK Government has launched a technical consultation on draft regulations for the Carbon Border Adjustment Mechanism (CBAM), setting out detailed requirements for how embedded carbon emissions in certain imported goods will be measured, monitored and verified ahead of CBAM’s introduction on 1 January 2027. CBAM will apply a carbon price to imports of aluminium, cement, fertilisers, hydrogen, and iron and steel, aligning the treatment of imports with costs faced by UK producers under the UK Emissions Trading Scheme and helping to address carbon leakage.

The draft legislation explains how importers can use either default emissions values or independently verified actual emissions data from overseas producers, alongside new obligations for record‑keeping, verification and accreditation. UK businesses importing goods in scope or relying on these materials in their international supply chains are encouraged to review the proposals and consider responding before the consultation closes on 21 May 2026, as the new requirements are expected to have cost, compliance and supply‑chain implications well ahead of implementation.