UK Steel Industry Faces Hit From Post-Brexit EU Climate Levy
- Britain faces another Brexit trade barrier with the bloc
- EU’s carbon levy designed to stop emissions being outsourced
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Britain’s steel exports to the European Union risk being hit with a climate surcharge after the government made it cheaper for companies to emit carbon dioxide, potentially erecting another post-Brexit trade barrier with the bloc.
Under the EU’s Carbon Border Adjustment Mechanism, or CBAM, fees will be added to imports of emissions-intensive goods such as steel and cement from countries deemed to have weaker carbon markets. That may include the UK, whose own pollution rights plunged to an all-time low earlier this month after the government overhauled its emissions trading system.