The Carbon Border Adjustment Mechanism (Emissions and Verification) Regulations 2026

5 Actual emissions

(1) Where no default value is being used for the CBAM good (“imported CBAM good”), the emissions must be calculated in accordance with the following steps— Step 1 Identify the monitoring period for the imported CBAM good. Step 2 In accordance with the notice published under regulation 6, use verified emissions data from that monitoring period to identify the amount, in tonnes, of relevant emissions emitted by the installation that produced the imported CBAM good in the production of that type of CBAM good during the monitoring period. Step 3 Where amounts of relevant emissions identified in step 2 are not amounts of carbon dioxide, convert them into an amount of carbon dioxide equivalent in accordance with regulation 8. Step 4 Add together all amounts from steps 2 and 3 to produce a total amount, in tonnes, of carbon dioxide equivalent. Step 5 Where precursor goods were used in the production of the imported CBAM good, add all precursor emissions for the imported CBAM good, determined in accordance with regulation 7, to the amount from step 4. Step 6 Identify the weight of the type of CBAM good produced by the installation during the monitoring period. Step 7 Divide the figure from step 4 or, where relevant, step 5 by the figure from step 6 to produce an amount, in tonnes, of carbon dioxide equivalent emitted in the course of the production of a tonne of the type of CBAM good (“the emissions intensity”), rounded to five decimal places. Step 8 Multiply the emissions intensity by the weight of the imported CBAM good. (2) This paragraph applies where— (a) all precursor goods for an imported CBAM good were produced by the same installation that made the imported CBAM good, (b) all the precursor goods produced by that installation that are the same type as the precursor goods for the imported CBAM good are used by that installation in the production of CBAM goods that are the same type as the imported CBAM good, and (c) no default value is being used for the imported CBAM good. (3) Where paragraph (2) applies the emissions for the imported CBAM good may be calculated in accordance with paragraph (1) as follows— (a) references to a CBAM good include all precursor goods for the imported CBAM good; (b) omit step 5 from paragraph (1). (4) This paragraph applies where no default value is being used for an imported CBAM good and the good falls under one of the following headings in the Table in Schedule 16 to FA 2026— (a) cement; (b) fertilisers. (5) Where paragraph (4) applies, emissions for the imported CBAM good must be calculated in accordance with paragraph (1) as if for step 7 there were substituted— Step 7 Divide the figure from step 4 or, where relevant, step 5 by the figure from step 6 and multiply the resulting figure in accordance with a conversion equation set out in a notice published by the Treasury to produce an amount, in tonnes, of carbon dioxide equivalent emitted in the course of the production of a tonne of the type of CBAM good (“the emissions intensity”), rounded to five decimal places. . (6) Emissions for an imported CBAM good for which no default value is used, and which was produced by an installation that produces multifunctional goods, may be calculated in accordance with paragraph (1) as if— (a) in step 2, the reference to “that type of CBAM good” were to “multifunctional goods”; (b) for step 5 there were substituted— Step 5 Add all precursor emissions for the multifunctional goods, determined in accordance with regulation 7, to the amount from step 4. ; (c) in steps 6 and 7, the reference to “type of CBAM good” were a reference to “multifunctional goods”. (7) The Treasury may publish a notice setting out cases where emissions for an imported CBAM good must be calculated in accordance with paragraph (1) as if the modifications made by paragraph (6) applied. (8) In this regulation, “multifunctional goods” means CBAM goods which meet the conditions set out in a notice published by the Treasury.