UK set to launch carbon levy on imported goods in 2027, says Treasury

Britain is set to charge a carbon levy on imported goods under plans announced by the Treasury to help prevent UK firms being undercut by overseas manufacturers.
By The Newsroom
Published 18th Dec 2023, 10:56 BST

The Treasury said the proposed new tax will come into effect in 2027, ensuring that imports of products such as iron, steel, aluminium, ceramics and cement from overseas will face a comparable so-called carbon price to those manufactured in Britain.

A carbon price is used by governments to help reduce emissions by charging a fee on carbon pollution to encourage industries to cut their greenhouse gases.

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There have been mounting calls for the UK Government to tackle “carbon leakage” over concerns that UK companies are being undercut by cheaper, but higher carbon, imports from countries where they charge a lower or no carbon price.

The Treasury said the plans will help level the playing field and boost UK industry investment in cutting greenhouse gas emissions.

Related topics:Government

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