UK Government Plans Carbon Tariffs on Imported Goods by 2027

The UK government announced on Monday that it intends to implement a new carbon pricing mechanism for imports by 2027. Tariffs will be imposed on goods imported from countries that do not impose carbon tariffs or have lower tariffs, as part of efforts to eliminate carbon emissions. The government stated that the carbon border adjustment mechanism will apply to high-carbon emission products in the sectors of steel, aluminum, fertilizers, hydrogen, ceramics, glass, and cement. The tariffs will depend on the amount of carbon emitted in the production of imported goods and the difference between the carbon price applied in the country of origin, if applicable, and the carbon price imposed on producers in the UK.