The UK is planning to introduce a carbon border tax from 2026, similar to the EU's carbon border adjustment mechanism (CBAM). This measure would impose levies on imported carbon-intensive products from countries with less robust climate laws and regulations. The move is seen as essential to align with the EU and avoid trade disruptions, especially considering the UK's significant trade ties with the EU. Proponents believe that introducing a carbon border tax would not only benefit the UK but also contribute to global efforts to implement carbon pricing, promoting the use of impactful decarbonization tools and aiding in achieving climate targets.

Source: Carbonherald