Jeremy Hunt, UK’s Chancellor of the Exchequer, has stated that the UK plans to introduce levies on imports of carbon-intensive goods from 2026 to protect local industries from unfair competition from regions with lower carbon costs, according to a report by the London-based Financial Times.
The UK is expected to launch its own carbon border adjustment mechanism (CBAM) in 2026, when the EU’s CBAM takes effect, aiming to avoid the risk of carbon-intensive products subject to EU levies being diverted to the UK market.
In April this year, the government started consultations considering a range of potential policy measures, including a CBAM, to mitigate carbon leakage risk in the future and ensure UK industry has the optimal policy environment to decarbonize, as SteelOrbis previously reported.