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UK: Consultation on carbon border adjustment mechanism (CBAM) regulations

Consultation closes May 21, 2026

april 16, 2026

HMRC on April 9, 2026, published draft regulations on the carbon border adjustment mechanism (CBAM) for consultation, which is HMRC’s second CBAM consultation in 2026.

  • The first consultation sought views on draft regulations setting out the administrative requirements of the 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 origin).
  • This second consultation seeks input on provisions that will govern the calculation of embedded emissions, record-keeping, and procedures for monitoring and verifying emissions data.

The consultation closes May 21, 2026.

Read an April 2026 report prepared by the KPMG member firm in the UK

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