Businesses Urge UK to Align Carbon Border Tax With EU’s Levy

Businesses are asking the UK to align policies in its proposed carbon border tax more closely to a similar levy in the European Union.

Forthcoming draft legislation should strive to achieve linkage between the UK and EU carbon border plans to ease financial impacts on businesses and maintain market competitiveness, business groups said following a public consultation.

The EU plans to put in place a final version of the tax, known as a carbon border adjustment mechanism, or CBAM, in 2026, while the UK will do the same in January 2027.

“The UK Government should now ensure that ...