Top Posts
Study shows climate change could make ‘droughts’ for...
Pakistan demands collective response in climate change fight
AfDB sets aside $40m to drive AGIA green...
Report: African cities move to address carbon-neutral development
Niger govt bans tree cutting, establishes agency to...
HEDA asks senate to hold IOCs accountable for...
FG issues flood alert for in 29 states,...
Lagos State Govt reassures residents over flash floods
NGO empowers women on climate resilience in Kaduna
Brazil launches COP30 accommodation platform after pressure from...
EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World
World

UK to introduce carbon tax on steel imports from 2027

by admineconai December 18, 2023
written by admineconai December 18, 2023
467

Latest reports suggest that 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.

The Treasury said that the tax would, among other things, 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.

In his reaction, the chancellor, Jeremy Hunt, said that the 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.”

The Treasury said that charges under the carbon border adjustment mechanism (CBAM) would depend on the amount of emissions in the manufacture of the imported product, as well as the gap between the carbon price applied in the country where it is produced and that paid by equivalent UK manufacturers.

Industry groups welcomed the plan but warned that the proposed start date of 2027 was too late. The trade body UK Steel pointed out that a similar mechanism will be put in place by the EU in 2026, meaning high-carbon steel from countries such as China could be dumped on to the UK market for a year, until the CBAM is in effect.

The UK Steel director general, Gareth Stace said that With more than 90% of global steel production facing no carbon cost, it is only right that a new carbon border policy is put in place to create a level playing field on carbon pricing.

“However, implementing the UK scheme one year after the EU CBAM starts is hugely concerning,”he said. “Despite the steel sector repeatedly warning officials how exposed the UK would be if it did not mirror the EU implementation timetable, government today seems to be actively planning for just that scenario.”

Story was adapted from the Guardian.

Carbon taxImportationIntroductionSteelUK
0 comment 0 FacebookTwitterPinterestEmail
admineconai

previous post
Conservation groups commend Cop28 plans to protect nature
next post
XR co-founder who broke window at HS2 protest given suspended sentence

Related Posts

Study shows climate change could make ‘droughts’ for...

August 18, 2025

Pakistan demands collective response in climate change fight

August 18, 2025

Brazil launches COP30 accommodation platform after pressure from...

August 7, 2025

Pakistan’s deadly floods worsened by global warming: study

August 7, 2025

Putin decree allows Russia to increase greenhouse gas...

August 7, 2025

New study shows climate change cancelling major events

August 4, 2025

ICJ says countries to be held accountable for...

August 4, 2025

Report shows PR firm working for Shell wins...

July 30, 2025

Study shows climate change could make ‘droughts’ for...

July 30, 2025

UN agency says deadly floods show need for...

July 22, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Instagram
  • Linkedin
  • Bloglovin
  • Vimeo

@2021 - All Right Reserved. Designed and Developed by Eco-Nai+

EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World