Britain will introduce a new carbon import levy on certain products from 2027 to protect local businesses against cheaper imports from countries with less strict climate regulations, the government announced on Dec. 18.
The UK’s carbon border adjustment mechanism (CBAM) will apply to carbon-intensive products in the iron, steel, aluminum, fertilizer, hydrogen, ceramics, glass, and cement sectors.
The charge applied will depend on the amount of carbon emitted in the production of the imported products and any gap between the carbon price applied in the country of origin and the carbon price faced by UK producers.
