- The UK government is seeking feedback on the design and implementation of a new carbon border adjustment mechanism (CBAM)
- The CBAM will apply a charge to imported goods based on their embedded emissions
- Initially, the CBAM will apply to imports of iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass, and cement
- The government aims to ensure that products from overseas are subject to a comparable carbon price as those produced in the UK
- ICAEW expressed support for the introduction of the CBAM to address carbon leakage
- The consultation includes questions on which products should be included, calculation and verification of embodied emissions, and CBAM rates
- ICAEW members are encouraged to participate in the consultation to ensure efficient implementation of the CBAM
- The consultation closes on 13 June 2024.
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
