Carbon Border Adjustment Mechanism, Consultation and Livestream Sessions

The government will introduce Carbon Border Adjustment Mechanism on 1 January 2027.

This will ensure highly traded, carbon intensive products from overseas face a comparable carbon price to that paid by UK manufacturers, so that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.

CBAM will apply to specific imports to the UK from the aluminium, cement, fertiliser, hydrogen and iron & steel sectors, given they are at risk of carbon leakage. You can find out more here: https://www.gov.uk/government/...

On 10th January, the government published the draft secondary legislation for technical consultation, alongside supporting notices which have force of law. This technical consultation seeks to ensure that the primary legislation delivers the policy correctly and effectively. It is not a further consultation on the policy design.

The consultation will be open for 6 weeks and invites views from interested parties, including importers and their agents, other businesses, individuals, tax advisors, trade and professional bodies and other interested parties, including those overseas.

You can access the draft secondary legislation here.

Feedback on the draft secondary legislation should be emailed to cbampolicyteam@hmrc.gov.uk by 11:59pm on 24 March 2026, using the subject line ‘CBAM technical consultation response’ and clearly referencing the relevant parts of the legislation.

In addition to the draft secondary legislation and notices, the government has also published a CBAM Policy Summary which provides an overview of CBAM as set out in the primary and draft secondary legislation in order to provide clarity for businesses who will be impacted.  You can access the CBAM Policy Summary here.

FPC Members can find links to the live stream UK CBAM sessions below