Environment

UK to impose carbon tax on imported goods by 2027

London, Dec 18 (EFE).- The British government on Monday said that it will impose a carbon tax on imported goods starting from 2027 as part of its de-carbonization and climate-change campaign.

The Carbon Border Adjustment Mechanism (CBAM) will apply to carbon-intensive products in the iron, steel, aluminum, fertilizer, hydrogen, ceramics, glass, and cement sectors, according to a statement from the British Ministry of Finance.

“This levy will make sure carbon intensive products from overseas – such as 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,” Chancellor of the Exchequer Jeremy Hunt said in the statement.

The United Kingdom underlined that it has been the first major economy to legislate for achieving net-zero emissions and is reducing its emissions faster than all other G7 member states.

The government insisted that the de-carbonization of the British industries would not succeed if this effort “simply leads to higher emissions abroad.”

“The new rules will tackle ‘carbon leakage’, reducing the risk of production and associated emissions being displaced to other countries because they have a lower or no carbon price,” the official added.

The charge applied by the CBAM will depend on the amount of carbon emitted in the production of the imported good, and the gap between the carbon tax applied in the country of origin and the carbon tax faced by UK producers.

“This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero,” Hunt said. EFE

vg/bks/sc

Related Articles

Back to top button