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  • Writer's pictureAdvantage Worldwide

Industry Update on Carbon Emissions

Changes are coming… The UK government is currently seeking feedback on its proposal to implement the Carbon Border Adjustment Mechanism (CBAM) by 2027.

If this new legislation is approved, foreign companies exporting goods to the UK would need to prove that they are paying for their carbon emissions.


If they fail to do so, they may face an equivalent levy to the price paid for carbon by UK manufacturers.


What’s the aim?

The aim of this proposal is to create a level playing field. It seeks to ensure that British manufacturers committed to reducing greenhouse gas emissions under the net zero target are not undercut by products from countries with less stringent climate regulations.


What’s the impact?

The CBAM will likely impact imports of carbon-intensive goods, including aluminium, cement, ceramics, fertilisers, glass, hydrogen, and iron & steel. The precise details of the scheme, including the list of products in scope, will be determined through consultation in 2024.


What’s next?

The government is seeking to gather feedback from a wide range of stakeholders. It will carefully consider the responses received in shaping the final design and implementation of the UK CBAM before legislating.


Need to know more?

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