Britain will include refined products in its new carbon import levy starting from 2027, Treasury documents showed on October 28. The government said this move "could help address carbon-leakage risks" for local refineries. This tax aims to stop emissions from moving abroad while helping British businesses switch to cleaner energy.
LONDON, Oct 28 (Reuters) - Britain will seek to include refined products in its new carbon import levy which is due to begin on some products from 2027, Treasury budget documents published on Wednesday showed.
"The government intends to expand the scope of the Carbon Border Adjustment Mechanism (CBAM) to include refined products, subject to consultation on the feasibility and impacts," the document said.
The CBAM is currently due to apply to carbon-intensive products in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors.
Britain said the levy would help to reduce the risk of so-called carbon leakage, avoiding emissions being displaced to other countries because they have a lower or no carbon price.
Including refined products "could help address carbon-leakage risks for refineries in Pembrokeshire, Cheshire, Hampshire and the Humber, giving British businesses confidence to decarbonise while retaining and renewing high-value industrial capability," the document said.