UK To Introduce Carbon Tax on Steel Imports from 2027

Imported raw materials such as steel and cement will incur a new carbon tax from 2027 under UK plans designed to support domestic producers and reduce emissions, but the government is facing criticism for not moving fast enough. From a report: The Treasury said the tax would help address the phenomenon of "carbon leakage," in which UK manufacturers are undercut on price by foreign rivals whose governments do not impose levies on businesses that emit a lot of carbon. The result is that emissions are simply displaced to other countries, while greener UK producers lose out because they have to pay carbon-related charges. The chancellor, Jeremy Hunt, said: "This levy will make sure carbon intensive products from overseas -- like steel and ceramics -- face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions. "This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero."

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