EU's Stance on Carbon Border Levy: No Exemptions for UK Until Market Link

The European Union will not exempt the UK from its carbon emissions fee on imported goods until both parties link their carbon markets. The UK's industries face significant financial implications from the EU's carbon border adjustment mechanism, which could cost them £800 million annually.

The European Union has firmly rejected granting Britain a temporary exemption from its carbon emissions levy on imported goods. This comes as both entities work towards linking their carbon markets, a prerequisite set by the EU before any exemption considerations.

British industries are poised to face an estimated cost of £800 million annually due to the EU's carbon border adjustment mechanism. The levy is expected to impose charges on imports such as steel and cement starting January, with companies having until September 2027 to purchase appropriate certificates.

EU Climate Commissioner Wopke Hoekstra emphasized that while the UK had hoped for a different outcome, the EU's primary focus remains on constructively working towards achieving market linkage. The UK's Cabinet Office has yet to issue a response.

(With inputs from agencies.)