Steel industry faces EU carbon tax hit

The UK steel industry could be one of the big victims of the EU’s proposed carbon tax. [DogukanKirimtayyif / Shutterstock]

The UK steel industry could be one of the big victims of the EU’s proposed carbon tax, according to a new report.

The finding by a Chatham House study analysed by lawmakers on the House of Commons European Scrutiny Committee released on Wednesday suggested that sites in Wales, the north, and north east of England would be most impacted.

The Carbon Border Adjustment Mechanism would apply a charge on the import of certain products depending on how much carbon dioxide (CO2) was emitted during production.

While UK goods already face a charge under the UK’s own emissions trading system and so would not be charged again, exporters would still be required to prove how much carbon had been emitted during production and provide evidence that a charge had been paid.

UK and EU officials had agreed that they would look at ways to link their emissions trading schemes as part of the Trade and Cooperation Agreement, which came into force in January, but there is no suggestion that any progress has been made since then.

(Benjamin Fox | EURACTIV.com)

Subscribe to our newsletters

Subscribe