This paper considers a closed–loop supply chain (CLSC) network design problem that accounts for the impact of carbon emission regulations. Three regulatory policy settings are considered; namely, (a) firms are subject to mandatory carbon caps on the amount of carbon they emit, (b) firms are taxed on the amount of emissions, and (c) firms can participate in a carbon cap and trade system. Traditional CLSC network design models are extended to account for the carbon emissions caused by transportation under different transportation modes. Model validations are demonstrated via a case study. Through detailed sensitivity analysis, we investigate how the parameters of regulatory emission control policies affect aspects of the CLSC network design such as product allocation and transportation configuration. This new formulation provides the decision makers with tools to balance the trade-offs between usual costs and the impact of carbon emission regulations. It also highlights the significance of incorporating carbon emission considerations when designing the CLSC network.