15/11/23

UK: UK Plans To Introduce Carbon Border Tax In 2026

As published on: carbonherlad.com, Wednesday 15 November, 2023.

Following similar measures announced by the EU, the UK is also planning to introduce a carbon border tax starting 2026.

The measure will bring about levies on imported carbon-intensive products from countries lacking the same robustness of climate laws and regulations.

After the EU soft-launched its own carbon border adjustment mechanism (CBAM) program, stakeholders in the UK worry that failing to introduce similar measures will likely hurt its trade, particularly with the EU, which is among its biggest trade partners.

And, on the contrary, many believe that should the UK introduce its own carbon border tax, this will not only benefit the country, but will also spur the shift towards global carbon pricing and help reach climate targets.

Finn O’Muircheartaigh, Director of Policy and Markets at BeZero Carbon, said: “A UK CBAM will be transformative in scaling international climate ambition. With the UN global stocktake set to conclude that we’re falling far short of limiting global warming to 2 degrees, governments must be prepared to embrace ambitious measures to accelerate the net zero transition.”

“A UK CBAM could incentivise a drive towards global carbon pricing – which in turn will encourage the use of impactful decarbonisation tools, such as high-quality carbon credits, to bring about action with the urgency required to tackle the climate crisis,” O’Muircheartaigh concluded.

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UK Carbon Border Tax