UK will charge carbon tax on certain imports

The British Government announced this Monday that it will charge a carbon tax on imported goods, which will come into effect in 2027 to support the decarbonization campaign.

Imports of iron, steel, aluminium, ceramics and cement from abroad will face a carbon price comparable to that of goods produced in the United Kingdom, indicates a statement released today by the British Ministry of the Economy.

The rate applied will depend on the amount of carbon emitted in the production of the imported good and the difference between the carbon price applied in the country of origin – if there is one – and the carbon price faced by British producers.

The UK has been the first major economy to legislate to achieve net zero emissions and is reducing its emissions faster than any other G7 country (the most industrialized), it adds.

In September, the European Union launched the first phase of a system to impose tariffs on CO2 emissions from steel, cement and other imported products, the first in the world. It will not begin collecting any taxes on CO2 emissions at the border until 2026.

The decarbonization of the industry United Kingdom It is an important part of achieving the energy transformation necessary to achieve zero emissions, but these efforts will not be successful if this measure leads to higher emissions abroad, the note says.

The new rules will address the “carbon leak”, reducing the risk that production and associated emissions are moved to other countries because they have a lower carbon price, points out the Economy portfolio.

“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 the Minister of Economy, Jeremy Hunt.

“This should give UK industry the confidence to invest in decarbonisation as the world moves to net zero emissions”he added.