TheUKgovernment may introduce a carbon border adjustment mechanism such as the one agreed by the EU last year, imposing an emissions levy on steel imports, according to a media report by the Financial Times. Previously, there were signals from theUKgovernment regarding this kind of mechanism, though there had been no talk about a levy.
The emissions levy would be aimed at protecting the carbon-intensive steel industry and would force theUK’s steel importers to cover the cost of the carbon emissions of the steel from foreign countries.
TheUKgovernment is also considering the approval of a financial aid package of £600 million for two steelmakers, British Steel and Tata SteelUK, for their green transition, as SteelOrbis previously reported. The details of the package were not published.
TheUKaims to reach net zero by 2050.