UK Carbon Border Adjustment Mechanism (CBAM) – Updates And Key Actions

What’s happened with CBAM lately?

Secondary legislation was passed through the Commons in July covering how CBAM will operate in practice in relation to:

• administrative provisions

• registration requirement

• returns, record keeping and retention (six years)

• CBAM rate calculations

• carbon price relief rules

• transitional provisions.

These augmentations mean the operational framework is largely complete, making it easier for businesses to make the necessary arrangements. The framework also covers how emissions will be monitored and verified. However, some industry bodies such as The Aluminium Federation has raised concerns that the guidance is not sufficiently comprehensive.