The United Kingdom mentioned on Monday it could implement a brand new import carbon pricing mechanism by 2027, with items imported from international locations with a decrease or no carbon value having to pay a levy as a part of decarbonization efforts.
The authorities mentioned the carbon border adjustment mechanism (CBAM) would apply to carbon-intensive merchandise within the iron, metal, aluminum, fertilizer, hydrogen, ceramics, glass and cement sectors.
The cost utilized will rely on the quantity of carbon emitted within the manufacturing of the imported good, and the hole between the carbon value utilized within the nation of origin – if any – and the carbon value confronted by U.Okay. producers.
“This levy will make sure carbon-intensive products from overseas – like steel and ceramics – face a comparable carbon price to those produced in the U.K., so that our decarbonization efforts translate into reductions in global emissions,” Treasury chief Jeremy Hunt mentioned.
“This should give U.K. industry the confidence to invest in decarbonization as the world transitions to net zero.”
Britain mentioned it could assist scale back the chance of “carbon leakage,” avoiding emissions being displaced to different international locations as a result of they’ve a decrease or no carbon value. The CBAM will work alongside the U.Okay. Emissions Trading Scheme, it added.
In September, the European Union launched the primary section of a system to impose CO2 emissions tariffs on imported metal, cement and different items, the world’s first. It won’t start accumulating any CO2 emission prices on the border till 2026.
That deliberate tariff has brought about disquiet amongst buying and selling companions and at a latest discussion board, China’s high local weather envoy Xie Zhenhua urged international locations to not resort to unilateral measures such because the EU levy.
Source: www.dailysabah.com