The world’s largest single market has launched a bold plan to tax carbon at its borders. The rest of the world is paying very close attention.

The world’s largest single market has launched a bold plan to tax carbon at its borders. The rest of the world is paying very close attention.

  • theinspectorst
    2•1 year ago

    My understanding was that the carbon tax applies to exporters from jurisdictions where carbon pricing undercuts the EU emissions market. So by oversupplying emissions credits in the UK post-Brexit (and thus letting the price per tonne drop to around half of the EU price), Sunak has brought UK exporters in-scope of the tax.

    • @MrHandyManOP
      2•1 year ago

      You are correct. This is from the CBAM Q&A document:

      Conversely, if a non-EU producer has already paid a carbon price in a third country on the embedded emissions for the production of the imported goods, the corresponding cost can be fully deducted from the CBAM obligation.