The UK government plans to implement a carbon tax on imports of raw materials like iron, steel, aluminum, ceramics, and cement from countries with lower or no carbon prices starting in 2027. This move aims to prevent 'carbon leakage,' where emissions are displaced to countries with cheaper prices due to less stringent carbon regulations. The tax will be based on the emissions from the manufacturing of imported products and the gap between the carbon prices in the producing country and the UK. Chancellor Jeremy Hunt states that the levy ensures comparable carbon prices for carbon-intensive products, aligning with UK decarbonization efforts.

Source: Carbonherald