Carbon tax: new government measure
The British Government announced plans to implement a carbon tax on imports of goods, which will come into force in 2027 as part of its efforts to decarbonize the industry and avoid relocating production and emissions to other countries.
This measure will affect imports of iron, steel, aluminum, ceramics and cement, equating the carbon price to that of domestically produced goods. The UK, by legislating to achieve net zero emissions , leads in emissions reductions among the major G7 economies.
The energy transition in the UK, crucial to achieving net zero emissions, highlights the importance of industrial decarbonisation. However, it is noted that the success of these efforts will depend on avoiding an increase in emissions abroad, known as “carbon leakage.” The new rules seek to address this problem by reducing the risk of shifting production and emissions to other countries with lower carbon prices.
“This tax will ensure that high-carbon products from abroad, such as steel and ceramics, face a carbon price comparable to those produced in the UK, so that our decarbonisation efforts translate into global emissions reductions.“said Chancellor of the Exchequer Jeremy Hunt.
” This should give UK industry the confidence to invest in decarbonisation as the world moves to net zero emissions ,” he added.
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