HMRC publishes outcome of technical consultation on draft CBAM legislation
HM Revenue & Customs (HMRC) has published the outcome of its technical consultation on the draft primary legislation for the UK carbon border adjustment mechanism (CBAM). The consultation, which ran from 24 March to 3 July 2025, sought views on whether the draft legislation correctly and effectively gives effect to the CBAM policy rather than revisiting the underlying policy design. CBAM will place a carbon price on specified emissions-intensive goods imported into the UK from sectors at risk of carbon leakage, including aluminium, cement, fertilisers, hydrogen, and iron and steel. The outcome document summarises stakeholder feedback, sets out key changes to the primary legislation and confirms the government’s decision to delay the inclusion of indirect emissions from the scope of CBAM at its implementation on 1 January 2027. The draft primary legislation is accompanied by draft Explanatory Notes, a draft Tax Information and Impact Note (TIIN) and a CBAM policy update to provide clarity for affected businesses.