The government has published a new package of guidance to help businesses prepare for the introduction of the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027.
Published on 16 October, the information includes illustrative CBAM rates, default emissions values and further guidance on monitoring, reporting and verifying emissions.
The publications are designed to help businesses understand their responsibilities under the new mechanism and prepare for the reporting requirements.
Key updates include:
- Illustrative CBAM rates: Worked examples demonstrating how sector-level rates will be calculated. The official rates for the first quarter of 2027 are expected to be published by the end of 2026.
- Default emissions values: Values that can be used where independently verified actual emissions data is unavailable, alongside guidance on how they should be applied.
- Monitoring and reporting guidance: Information for overseas producers, UK importers and verifiers on collecting, verifying and reporting emissions data.
- Technical guidance: Further detail on monitoring, reporting and verification requirements, including methodologies and worked examples.
The government has also confirmed its intention to introduce country-specific default emissions values from 2029.
Businesses are encouraged to review the guidance to understand how the requirements may affect their operations and supply chains.
HMRC is inviting feedback on the technical monitoring, reporting and verification guidance until 13 November 2026. Feedback can be sent to cbampolicyteam@hmrc.gov.uk with ‘MRV technical guidance feedback’ in the subject line.
