The UK’s HMRC issued draft regulations on the Carbon Border Adjustment Mechanism (CBAM) on 9 April 2026, covering the administration of the tax, including embodied emissions, and the monitoring and verification of emissions data. The technical consultation sets out draft secondary legislation due to take effect on 1 January 2027 alongside CBAM, and seeks stakeholder feedback on its design and implementation.
The UK’s HMRC has issued draft regulations on the carbon border adjustment mechanism (CBAM) on 9 April 2026. The draft covers the administration of the tax, including emissions, as well as the monitoring and verification of emissions data.
This technical consultation sets out draft secondary legislation that will come into effect on 1 January 2027 alongside the Carbon Border Adjustment Mechanism (CBAM).
It is in addition to other draft secondary legislation—covering administrative requirements, the CBAM rate, and carbon price relief—which was open for consultation until 24 March.
The purpose is to gather feedback from stakeholders on the drafting of the secondary legislation to ensure it delivers the policy correctly and effectively, enabling the tax to operate as intended and providing for administrative matters.
A draft of the Notice, which will have the force of law, is also being published to support understanding of how all CBAM legislation will work together. This document is not formally part of the consultation, but feedback can still be submitted.
A policy summary document is also available for further information on how CBAM will operate.
Scope of draft secondary legislation
The draft includes legislative requirements related to the administration of the tax, including but not limited to:
- embodied emissions
- monitoring and verification of emissions data
Interested parties
This consultation is of interest to:
- UK importers of goods from the aluminium, cement, fertilisers, hydrogen, and iron and steel sectors, and downstream producers using these goods in their supply chains
- overseas producers of CBAM goods for export to the UK
- overseas accreditation bodies and emissions verifiers, if overseas producers choose to monitor actual emissions
- respondents to the previous consultation
- international partners with an interest in CBAM policy
Responses or queries should be sent by email to cbampolicyteam@hmrc.gov.uk, with the subject line “CBAM technical consultation response”, clearly referencing the relevant parts of the legislation.
This consultation closes on 21 May 2026.
