Reports the UK and the EU are preparing to agree a deal protecting British businesses from the impact of a new carbon border tax have been welcomed by campaigners.
The EU is introducing a new carbon border adjustment mechanism (CBAM) from January 1, 2026, which had prompted fears that UK consumers and firms could be hit by higher bills and cheap goods flooding the market due to the impact of the tax.
But now, according to the Guardian, its understood that the UK and EU are working on temporary mechanisms to protect the UK – ahead of our own version of the levy coming into force in 2027.
Naomi Smith, chief executive of Best for Britain, which has campaigned for the move since May 2023, said:
“Some of Britain’s biggest international investors have warned that divergence between the EU and UK on carbon taxes could cost jobs and investment.
“This common sense move will reduce costs and admin for businesses in the EU and UK while helping to boost economic growth in Britain. The government must now work with our European allies to fully align Britain’s own carbon tax regime to secure these benefits for the long-term.”