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UK’s Proposed Carbon Border Tax
May 12 , 2025
17 hrs 0 min
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- The UK government in December 2023 decided to implement its Carbon Border Adjustment Mechanism (CBAM) starting 2027.
- Carbon tax will be levied on products such as iron and steel, aluminium, fertiliser and cement, from 2027.
- India's exports worth USD 775 million to the UK may be impacted due to this decision.
- The recent India-UK free trade agreement has no provision to counter Britain's proposed carbon tax.
- Because of the current uncertainty and no legislation in the place, there is an understanding that India will/ has preserved its right to retaliate or rebalance the concessions (in future).
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