"UK's Carbon Levy on Imported Goods and Steel Imports Set for 2027 Implementation"
The UK government plans to implement a carbon import levy on certain products by 2027 to protect domestic businesses from cheaper imports with lower climate standards. The carbon border adjustment mechanism (CBAM) will apply to carbon-intensive products in sectors such as iron, steel, aluminum, and cement. The levy will be based on the carbon emissions produced during the manufacturing process and the price difference between the country of origin and UK producers. The measure aims to prevent carbon leakage and ensure that carbon-intensive products from overseas face a comparable carbon price to those produced domestically. The UK's steel industry supports the move, but is concerned about the timing, as the EU's carbon measure will start a year earlier.