Government is consulting on plans to prevent ‘carbon leakage’, as well as extending emissions trading scheme to 2050
The UK government intends to introduce tariffs on carbon intensive products such as fertiliser and cement from countries that have a lower carbon price than the UK. The carbon border adjustment mechanism (CBAM) would come into force in 2027 and aims to reduce the risk of ‘carbon leakage’ , whereby production (and the associated emissions) move overseas to countries with less stringent climate polices.