2023-12-18 13:48:10
This “carbon border adjustment mechanism” will apply in the UK “by 2027” for carbon-intensive products in the iron, steel, aluminum, fertilizer, hydrogen, ceramics, glass and cement, the British government said on Monday.
The United Kingdom announced on Monday that it would introduce a new “carbon tax» on imported carbon-intensive goods from sectors such as metallurgy, glass or cement, following a similar mechanism planned in the European Union (EU). “Goods imported into the UK from countries with a lower or no carbon price will have to pay a tax by 2027, ensuring that foreign products face a comparable carbon price to those produced in the UK», According to a press release.
Ce «carbon border adjustment mechanism» will apply to carbon-intensive products in the iron, steel, aluminum, fertilizer, hydrogen, ceramics, glass and cement sectors, specifies the British government. The measure will be subject to more in-depth consultation in 2024, in particular to determine the precise list of products concerned.
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A carbon border adjustment mechanism for the EU from 2026
This new system will work “alongside the UK emissions trading system» – which has taken over from the European carbon market created in 2005 since Brexit -, the reform of which is also under study, London specified in its press release.
In the EU, a Carbon Border Adjustment Mechanism (CBAM) is due to come into force in 2026, which will also require companies that import “carbon-intensive goods» of the iron and steel, aluminum, cement, fertilizers and electricity sectors, to pay a tax on the CO2 emitted during their manufacturing abroad. This mechanism was born in order to maintain fair conditions of competition between European manufacturers of these products – already subject to the European carbon market – and others, in the face of the planned disappearance of free quotas in Europe.
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