Britain to extend upcoming carbon border tax to include refined products, documents show

Britain Expands Carbon Border Tax to Refined Products in 2027 Plan

Britain's Carbon Border Adjustment Mechanism and Its Expansion

Introduction to the New Carbon Import Levy

LONDON, Oct 28 (Reuters) - Britain will seek to include refined products in its new carbon import levy which is due to begin on some products from 2027, Treasury budget documents published on Wednesday showed.

Government's Intentions and Consultation Process

"The government intends to expand the scope of the Carbon Border Adjustment Mechanism (CBAM) to include refined products, subject to consultation on the feasibility and impacts," the document said.

Current Scope of the CBAM

The CBAM is currently due to apply to carbon-intensive products in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors.

Addressing Carbon Leakage and Supporting British Industry

Reducing Carbon Leakage Risks

Britain said the levy would help to reduce the risk of so-called carbon leakage, avoiding emissions being displaced to other countries because they have a lower or no carbon price.

Impact on Refineries and Industrial Capability

Support for Regional Refineries

Including refined products "could help address carbon-leakage risks for refineries in Pembrokeshire, Cheshire, Hampshire and the Humber, giving British businesses confidence to decarbonise while retaining and renewing high-value industrial capability," the document said. 

Reporting Credits

(Reporting By Susanna Twidale; Editing by Andrew Heavens)