UK Carbon Border Tax to Exclude Indirect Emissions Until 2029

The UK will initially exclude indirect emissions from its carbon border tax rules, set to commence January 2027.

The UK’s Carbon Border Adjustment Mechanism, a carbon price on imported industrial goods with high greenhouse gas emissions, won’t include indirect emissions “until 2029 at the earliest”, according to the UK’s 2025 budget released on Wednesday.

• Direct emissions are generated during the production of goods, while indirect emissions refer to electricity used during production. Some industry groups, particularly in the aluminum sector, had urged the UK government to exclude indirect emissions to align with the EU system.
• The UK’s carbon border tax ...