According to foreign media reports, the British government recently announced that it would implement a new import carbon tax mechanism by 2027 to help protect businesses from cheap imports from countries with less stringent climate policies. The
planned Carbon Border Adjustment Mechanism (CBAM) will apply to carbon-intensive products in the steel, aluminum, fertilizer, hydrogen, ceramics, glass and cement industries. The charges
imposed will depend on the amount of carbon emitted in the production of the imported goods and the gap between the carbon price applied in the country of origin and the carbon price faced by UK producers.
Finance Minister Jeremy Hunt said: "This levy will ensure that carbon-intensive products from overseas, such as steel and ceramics, face a carbon price comparable to those produced in the UK, so that our decarbonisation efforts translate into a reduction in global emissions."
While the move was welcomed by industry groups, they warned that the proposed 2027 start date was later because EU carbon tariffs would be imposed earlier, in 2026. This means that high carbon steel from some countries will be dumped on the UK market for a year until the tax comes into effect. The
UK has a target of net-zero emissions by 2050, and launched an Emissions Trading System (ETS) in 2021 to charge power plants, factories and airlines for each tonne of carbon dioxide they emit as part of efforts to meet this target.
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