UK Exporters Risk Carbon Tax Costs Without Speedy EU Alignment

Aluminum, steel, and other industry leaders are pushing the UK and EU to agree on a temporary carbon tax exemption to avoid exporters being hit by extra costs before their respective carbon markets are aligned.

The UK plans to introduce a tax on imported carbon-intensive industrial goods from countries with lower or no carbon pricing from January 2027. The EU’s carbon tax is set to take effect a year earlier, in January 2026, so industry leaders are urging swift alignment to avoid interim cost burdens.

“A plausible outcome here is that the EU agrees to an exemption from their CBAM ...