UK CBAM

Environmental policy - emissions - regulation - UK.

Abbreviation for proposals for a UK Carbon Border Adjustment Mechanism, similar to the proposed EU CBAM.

Further complications

"According to the Chartered Institute of Taxation, carbon border tax can play an important part in delivering net zero, but urged the government to ensure any policy did not restrict international trade purely to benefit domestic producers. 'We actually need to incentivise low carbon-emitting production at home and abroad,' it said.

KPMG said that while the initial proposed outline has similarities to the EU CBAM (which will impact UK exporters of EU covered goods), the proposed UK CBAM would have a potentially significant impact on UK importers of UK covered goods. Businesses caught by both sets of rules could face further complications of having to comply with two similar, but distinct, regimes.

It added that organisations that have been closely following the EU CBAM will already be familiar with the implications of a carbon border adjustment mechanism: higher operating costs, new compliance and reporting obligations and carbon accounting challenges."

The Treasurer online - 17 May 2023.

See also

• Brexit
• Carbon Border Adjustment Mechanism (CBAM)
• Carbon credits
• Carbon footprint
• Carbon leakage
• Carbon-neutral
• Carbon tax
• Carbon Trust
• Corporate social responsibility
• Decarbonise
• Embedded carbon
• Emissions
• Environmental policy
• Environmental profit and loss
• Footprint
• International Institute for Sustainable Development
• Regime
• Regulation
• Renewables
• Streamlined Energy and Carbon Reporting
• World Trade Organization (WTO)

Other resources

• UK considers carbon border tax - The Treasurer online - 17 May 2023
• Carbon Border Adjustment Mechanism - European Commission
• The upcoming EU Carbon Border Adjustment Mechanism - Covington Global Policy Watch
• Can an EU CBAM make global trade greener while respecting WTO rules? - International Institute for Sustainable Development