In his autumn statement, Jeremy Hunt, UK’s Chancellor of the Exchequer, has stated that the government has undertaken extensive consultations on possible measures to mitigate carbon leakage risk, including introducing a carbon border adjustment mechanism and will publish its decision shortly. However, he did not announce a carbon border adjustment mechanism (CBAM) and a timetable to implement it by 2026.
Recently, Mr. Hunt had stated that the UK plans to introduce levies on imports of carbon-intensive goods from 2026, as SteelOrbis previously reported.
The UK-based trade association UK Steel has criticized the chancellor for missing the opportunity to confirm that the country will implement a CBAM, according to media reports. The association explained its concerns regarding the risk of facing carbon leakage and lower competitiveness. The UK needs its own CBAM in 2026 when the EU’s CBAM takes effect, to avoid the risk of carbon-intensive products subject to EU levies being diverted to the UK market, SteelOrbis understands.