The UK government will impose a carbon levy on imports of iron and steel through the carbon border adjustment mechanism (CBAM) by 2027, as SteelOrbis previously reported. The UK-based trade association UK Steel has stated that as the EU will implement its own CBAM from 2026, the implementation of the UK’s CBAM in 2027 leaves the UK steel industry vulnerable. The association added that the failure to align the EU’s CBAM timetable could mean that some of the high-emission steel currently exported to the EU will be diverted to the UK.
“With over 90 percent of global steel production facing no carbon cost, it is only right that a new carbon border policy is put in place to create a level playing field on carbon pricing. However, implementing the UK scheme one year after the EU CBAM starts is hugely concerning,” Gareth Stace, director general of UK Steel, said.