In line with measures announced by the EU, the UK also plans to implement a carbon border tax starting from 2026. This measure will bring about levies on imported carbon-intensive products from countries that lack similar robustness in climate laws and regulations.
With the EU’s soft launch of its carbon border adjustment mechanism (CBAM), stakeholders in the UK are concerned that failing to introduce similar measures will likely harm its trade, particularly with the EU, one of its major trading partners.
