Dec. 18-19, 2023
www.gov.uk/government/news/new-uk-levy-to-level-carbon-pricing
Plan matches EU measure in some ways, which Brazil has criticised for being unilateral and focused on protecting EU industry.
However, Gareth Stace, industry group UK Steel director-general, said it was “hugely concerning” that the scheme would not be implemented until 2027, given that the EU is implementing its own carbon border tax in 2026, according to the Times.
Steelmakers fear that the delay could see foreign polluting steel priced out of Europe and dumped on the UK in 2026.
https://apple.news/AwBnfiEwuR9OQyNNqKI7BXA
Times snip:
Source doc:
- imports of iron, steel, aluminium, ceramics and cement from overseas will face a comparable carbon price to those goods produced in the UK
- reduces the risk of ‘carbon leakage’, avoiding emissions being displaced to other countries because they have a lower or no carbon price
Goods imported into the UK from countries with a lower or no carbon price will have to pay a levy by 2027, ensuring products from overseas face a comparable carbon price to those produced in the UK.
The UK has a track record to be proud of on decarbonisation. We were the first major economy to legislate for net zero and we are reducing our emissions faster than any other G7 country.
Decarbonising UK industry forms an important part of delivering the energy transformation needed to achieve net zero.
But these efforts will not succeed if decarbonisation in the UK simply leads to higher emissions abroad.
The carbon border adjustment mechanism (CBAM) will ensure highly traded, carbon intensive products from overseas in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors face a comparable carbon price to those produced here.
The new rules will tackle ‘carbon leakage’, reducing the risk of production and associated emissions being displaced to other countries because they have a lower or no carbon price. Carbon leakage undermines the country’s efforts to decarbonise as the world transitions to net zero.
The charge applied by the CBAM will depend on the amount of carbon emitted in the production of the imported good, and the gap between the carbon price applied in the country of origin – if any – and the carbon price faced by UK producers.
Taking this action will ensure the environmental integrity of our decarbonisation policies and will give industry in the UK the confidence to continue to invest in decarbonisation, with the knowledge that it will result in a true net reduction in global emissions.