In late April, the UK government unveiled draft legislation for its Carbon Border Adjustment Mechanism (CBAM), launching a technical consultation phase that will conclude on July 3, 2025. The goal is to refine the legislation based on stakeholder feedback and ensure effective policy implementation. The proposed CBAM framework will apply a carbon tax on certain imported goods—aluminum, cement, fertilizers, hydrogen, and iron and steel—based on their embedded direct and indirect emissions. The amount payable will reflect the UK's domestic carbon price per tonne of CO₂, calculated quarterly using the national ETS auction average. The first compliance cycle will cover imports made in 2027, with reporting due by May 31, 2028, and quarterly payments required thereafter starting in 2028.
To facilitate a smooth rollout, the policy outlines that beginning in 2027, each covered product will have a single default emissions value, with its calculation methodology finalized beforehand. Businesses can reduce their CBAM liability if the imported goods have already been subject to a verifiable carbon price in another jurisdiction. However, only schemes that transparently set a per-tonne CO₂ cost will be recognised. Meanwhile, the European Commission continues working on standardizing carbon prices for different products and countries to complement the broader CBAM simplification efforts across the EU.
To help businesses navigate these challenges, CBAM Reports provides support with calculating
embedded emissions, preparing CBAM reports in
XML format, validating data, and ensuring seamless import into the CBAM registry. Contact CBAM Reports today for tailored assistance in achieving CBAM compliance efficiently.
#cbam #cbamxml #cbamreport #cbamexceltemplate #cbamexcelsheet #cbamcheck #carbontax #cbamregulations #cbamreportexample #cbamuk #ukdraftlegislation