The UK has released draft primary legislation for the Carbon Border Adjustment Mechanism (CBAM), impacting imports of goods from sectors like aluminium, cement, fertiliser, hydrogen, and iron and steel. The legislation requires importers to register with HMRC when imports exceed £50,000. CBAM liability calculation involves determining emissions in imported goods and applying a tax rate, with allowances for carbon price relief. Exemptions are in place for goods from jurisdictions with linked emissions trading schemes. Administrative simplifications like group treatment and quarterly accounting periods aim to ease compliance. The draft also outlines penalties for non-compliance. The government plans to gather feedback through consultations and aims to finalize all CBAM legislation by 2027. The UK-EU Leaders' summit discussed the potential of linking UK and EU Emissions Trading Schemes to eliminate CBAM liability. Around 10,000 businesses importing CBAM goods will be impacted, urging businesses to review the draft legislation to assess their scope. Companies are advised to engage in consultations and prepare for the CBAM implementation.