UK consults on carbon border adjustment mechanism regulations

The new tranche of draft legislation sets out provisions that will govern the calculation of embedded emissions, record-keeping and procedures for monitoring and verifying emissions data, as highlighted by KPMG UK’s Barbara Bell and Chalotte Capper.

The United Kingdom’s HM Revenue and Customs (HMRC), on 9 April 2026, published draft regulations on the Carbon Border Adjustment Mechanism (CBAM). This is HMRC's second UK CBAM consultation of 2026. The first sought views on draft legislation setting out the administrative requirements of this new indirect tax, along with provisions outlining the CBAM rate and carbon price relief (which is available where imported goods have borne certain types of carbon taxation in their countries of...

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Published Date: 21 April 2026