Carbon compliance calendar

Operators, aircraft operators and shipping companies surrender allowances covering their verified 2025 emissions. The deadline moved from 30 April to 30 September from 2024.

The second phase, 2027 to 2035, makes offsetting mandatory for international flights between states above ICAO's participation thresholds. Least developed countries, small island developing states and landlocked developing countries are exempt unless they volunteer.

Installations making CBAM goods receive 95% of their benchmark free allocation, down from 97.5% in 2026. The CBAM obligation on imports rises as free allocation falls.

Importers of aluminium, cement, fertiliser, hydrogen, and iron and steel into the UK become liable for the difference between the carbon price paid where the goods were made and the UK carbon price.

Auctions of allowances for the new system covering fuel for buildings and road transport begin a year before the obligation starts. The exact first auction date is set by the auction calendar.

Certificates covering 2026 imports go on sale to authorised declarants through a central platform. This is the point at which CBAM starts costing real money.

Version 2.0, adopted by the SBTi Board on 21 May 2026 and published on 11 June 2026, takes effect on 1 February 2027, the date in the Standard's own version history. Target validations against it open in the first quarter of 2027, and companies may still submit under Version 1.3.1 until 31 January 2028.

From 2027, at the end of each quarter an importer must hold certificates covering at least 50 per cent of the embedded emissions in everything imported since 1 January.

Operators submit their 2026 emissions reports, verified by an accredited verifier, to their competent authority.

The annual CBAM declaration covering 2026 imports is submitted and the certificates are surrendered. Moved here from the original 31 May 2027.

Allowances covering verified 2026 emissions are surrendered.

Where embedded emissions are declared with default values rather than verified actual values, the mark-up rises from 20% to 30% for iron and steel, aluminium, cement and hydrogen. Fertilisers stay at 1%.

The obligation to surrender allowances for fuel released for consumption in buildings, road transport and small industry begins, a year later than first legislated.

Under current law the CBAM factor steps down to 90%.

Aeroplane operators cancel eligible emissions units covering their offsetting requirements for the first phase, 2024 to 2026.

After this date Version 2.0 of the Corporate Net-Zero Standard is mandatory for all target submissions. Near-Term Criteria V5.3 closes on the same day.

A Commission proposal of 17 July 2026 would reintroduce 15% of the phased-out free allocation for CBAM sectors from 2028 and extend the phase-out to 2038. It is still being negotiated and is not law.

Under current law the CBAM factor steps down to 77.5%, the first large step in the phase-out.

Under current law about half of benchmark free allocation remains for CBAM goods.

Under current law the CBAM factor steps down to 39%.

Under current law the CBAM factor steps down to 26.5%.

Under current law the last year in which any CBAM factor applies.

No CBAM factor applies from 2034, so CBAM certificates cover the full embedded carbon cost. The 17 July 2026 proposal would extend the phase-out to 2038 if adopted.

Under the Corporate Net-Zero Standard V2.0, Category A companies must support carbon removals for their ongoing emissions from 2035 onward.