In this way, the country will protect local producers from unfair competition from regions with lower carbon costs
The United Kingdom plans to introduce a tax on imported carbon-intensive goods starting in 2026 to protect local industries from unfair competition from regions with lower carbon costs. This was announced by UK Finance Minister Jeremy Hunt, SteelOrbis reports.
The UK is expected to launch its own carbon border adjustment mechanism (CBAM) in 2026, when CBAM comes into force in the European Union. This way, the country will avoid the risk of redirecting carbon-intensive products to the British market, which will be subject to taxation in the EU.
In April of this year, the UK government launched a consultation on a number of potential policy measures, including the CBAM, to reduce the risks of future carbon emissions and provide domestic industry with an optimal policy environment for decarbonization.
As GMK Center reported earlier, the British government agreed support package for Tata Steel in the amount of £500 million ($620 million) to secure the future of the metal plant in Port Talbot. The company is expected to invest £1.25 billion, including a government grant, for new electric arc furnaces to make steel more environmentally friendly at the facility. EAFs are to replace existing blast furnaces that are reaching the end of their service life. The move to sustainable steel production at Port Talbot is expected to reduce carbon emissions in Wales by 22%, and on-site emissions by 85%