The UK government may introduce a carbon border adjustment mechanism such as the one agreed by the EU last year, imposing an emissions levy on steel imports, according to a media report by the Financial Times. Previously, there were signals from the UK government regarding this kind of mechanism, though there had been no talk about a levy.
The emissions levy would be aimed at protecting the carbon-intensive steel industry and would force the UK’s steel importers to cover the cost of the carbon emissions of the steel from foreign countries.
The UK government is also considering the approval of a financial aid package of £600 million for two steelmakers, British Steel and Tata Steel UK, for their green transition, as SteelOrbis previously reported. The details of the package were not published.
The UK aims to reach net zero by 2050.