The UK Government has published draft emissions and verification rules, creating a framework for calculating embedded emissions in products covered by the Carbon Border Adjustment Mechanism (CBAM). The framework is due to come into force on 1 January 2027 and will apply throughout the UK, including Northern Ireland.
This is in addition to another second draft of the rules detailing the administrative requirements, the CBAM rate and the carbon price reduction as previously reported by SteelOrbis.
Basic Definitions and Calculation Methodologies
The draft regulations express emissions in metric tons of carbon dioxide equivalent (CO₂e) and allow for two calculation approaches.
If default values are used, emissions are calculated by multiplying the weight of the CBAM item by the applicable value default. When actual emissions data are available, a step-by-step methodology is applied, including determining the monitoring period, calculating total production emissions, converting them to carbon dioxide equivalent, including emissions from precursor products, determining emission rates, and multiplying by product weight.
The framework explains how emissions from precursor products are included in total emissions. Actual data is used where possible, while default values are used in the absence of verified information. Emission recalculation data is also included in the rules, which allows
