UK CBAM Update - Draft Primary Legislation Published

The following information is from HM Revenue & Customs - Customs Intermediaries Customer Management Team - 25/04/2025

Yesterday, the government published the draft primary legislation for the Carbon Border Adjustment Mechanism (CBAM) for technical consultation. 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 10 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.  

Feedback on the draft legislation should be sent by email to cbampolicyteam@hmrc.gov.uk by 11:59pm on 3 July 2025.  

In addition to the draft primary legislation, the government has also published a CBAM Policy Update which provides an overview of the scope and design of the CBAM in order to provide clarity for businesses who will be impacted.  It includes decisions relating to the CBAM policy taken by the government following publication of the Government Response to the 2024 policy consultation.  

Further detailed guidance will be provided in advance of the commencement of the CBAM on 1 January 2027. 

We are grateful for the engagement received to date and are committed to working closely with all interested stakeholders as we continue to develop the CBAM policy design.    

If you have not already, and would like to join the CBAM mailing list to stay informed of policy developments, please contact cbampolicyteam@hmrc.gov.uk