background image

UK implementing carbon levy on imported goods by 2027

author image

By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: The UK government announced plans to implement a new import carbon pricing mechanism by 2027
• This mechanism, known as the carbon border adjustment mechanism (CBAM), aims to level the playing field for domestic producers by applying a levy on carbon-intensive imported goods from countries with lower or no carbon pricing

🔭 The context: CBAM will target products in sectors like iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass, and cement
• The charge will be based on the carbon emissions associated with the production of these goods and the disparity in carbon pricing between the UK and the exporting country

🌍 Why it matters for the planet: The CBAM is designed to combat 'carbon leakage', where emissions are transferred to countries with laxer carbon pricing, undermining global decarbonization efforts
• By aligning the cost of carbon emissions for domestic and imported goods, the UK aims to encourage global reductions in emissions and incentivize green investment

⏭️ What's next: This initiative is part of the UK's broader strategy to transition to net zero emissions, and it complements the UK Emissions Trading Scheme
• The UK's approach follows the EU's introduction of a similar system, signaling a growing international trend towards carbon pricing mechanisms

💬 One quote: "This levy will make sure carbon intensive products from overseas... face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions" (Jeremy Hunt, UK Finance Minister)


Click for more news covering the latest on carbon

Did you enjoy this illuminem voice? Support us by sharing this article!
author photo

About the author

illuminem's editorial team - providing you with concise summaries of the most important sustainability news of the day.

Follow us on Linkedin, Twitter​ & Instagram

Other illuminem Voices


Related Posts


You cannot miss it!

Weekly. Free. Your Top 10 Sustainability & Energy Posts.

You can unsubscribe at any time (read our privacy policy)