The UK Government plans to implement a carbon border adjustment mechanism (UK CBAM) from 2027 to impose a levy on certain carbon-intensive imports. The aim is to prevent ‘carbon leakage’ and encourage domestic decarbonisation. The impacted sectors include iron, steel, aluminium, fertiliser, hydrogen, cement, glass, and ceramics. UK-based businesses importing these goods should consider the operational and financial impact, as well as differences between EU and UK CBAM requirements. The introduction of the regime in 2027 may pose commercial challenges, and businesses should closely monitor its development to remain competitive. KPMG can provide insights and support for businesses preparing for the UK CBAM.
Source KPMG
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