NEW DELHI: After the European Union, the UK on Monday announced plans to implement carbon border tax from 2027 on iron, steel, aluminium, ceramics and cement imports, a move that will increase the headache for countries such as India.
The tax levied would depend on the amount of carbon emitted in the production of the imported goods and the gap between the carbon price in the UK and the country of origin.
“This levy will make sure carbon intensive products from overseas – like steel and ceramics – face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions. This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero,” UK chancellor of the exchequer Jeremy Hunt said in a statement.
While the government has not commented on the development, India is expected to red flag the move as a non-tariff barrier. It has opposed the carbon border adjustment mechanism (CBAM) introduced by the EU and has lodged a protest bilaterally as well as at WTO. It is…
The tax levied would depend on the amount of carbon emitted in the production of the imported goods and the gap between the carbon price in the UK and the country of origin.
“This levy will make sure carbon intensive products from overseas – like steel and ceramics – face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions. This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero,” UK chancellor of the exchequer Jeremy Hunt said in a statement.
While the government has not commented on the development, India is expected to red flag the move as a non-tariff barrier. It has opposed the carbon border adjustment mechanism (CBAM) introduced by the EU and has lodged a protest bilaterally as well as at WTO. It is…
