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UK to impose carbon tax on imported goods starting in 2027

Starting in 2027, the UK will impose a carbon tax on imported products in the aluminum, steel, ceramic, fertilizer, glass, hydrogen, and iron sectors as part of a carbon border adjustment mechanism.

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UK to impose carbon tax on imported goods starting in 2027

According to a statement from the UK Treasury, the carbon border adjustment mechanism aims to reduce the risk of carbon leakage into the country in the future and contribute to the decarbonization of the economy.

In this context, a carbon tax will be applied to imported products in the aluminum, steel, ceramic, fertilizer, glass, hydrogen, and iron sectors starting from 2027.

The tax to be applied will be determined based on the amount of carbon emissions during the production process of the imported good and the difference, if any, between the carbon price applied in the country of origin and the price applied to producers in the UK.


News Source: 12punto

Economy regulation England