Article
The New UK Carbon Border Adjustment Mechanism
The UK Carbon Border Adjustment Mechanism enters into force on January 1, 2027, imposing a carbon price on imports of aluminum, cement, fertilizers, hydrogen, and iron and steel to address carbon leakage and ensure competitive parity with domestic producers under the UK Emissions Trading Scheme. Operating as a tax administered by HMRC, the mechanism will phase out free allowances over nine years while potentially exempting EU imports if UK-EU ETS linking negotiations succeed.
Jones Day
