On 30 March 2023, the UK Government announced a new consultation, ‘Addressing carbon leakage risk to support decarbonisation’. Carbon leakage – broadly, the risk that businesses will shift their carbon intensive activities offshore – can significantly undermine domestic efforts to decarbonise. This consultation aims to mitigate this risk by seeking views on a range of proposed policy measures to tackle carbon leakage, including the introduction of a UK Carbon Border Adjustment Mechanism (CBAM) and Mandatory Product Standards (MPS).
Source KPMG
