The Treasury has launched a consultation, regarding the introduction of a UK carbon border adjustment mechanism (CBAM), set to be implemented on imports of carbon intensive goods such as aluminium and cement starting 1st January 2027.
This tax will be calculated based on emissions associated with different materials, offsetting any carbon price already paid by manufacturers.
The consultation, titled “Addressing carbon leakage risk to support decarbonisation,” seeks feedback on the scheme’s design and administration.
Interested parties, including importers, businesses, individuals and trade bodies, are invited to submit responses by 13th June 2024.
