The United Kingdom Exchequer announced on Monday it will implement a tax on iron, steel, aluminum, ceramics, and cement imports to the country by 2027 that will equalize the carbon cost of products from overseas with those produced in Britain.
"This should give UK industry the confidence to invest in decarbonization as the world transitions to net zero," Chancellor of the Exchequer Jeremy Hunt said.
The new strategy under the name Carbon Border Adjustment Mechanism (CBAM) will tackle "carbon leakage," mitigating the risk of production and related emissions displaced to other countries due to their lower or nonexistent carbon pricing. "We were the first major economy to legislate for net zero and we are reducing our emissions faster than any other G7 country," His Majesty's Treasury said.
