UK Introduces 'Carbon Tax' on Steel... US Announces IRA Measures

Bloomberg reported on the 30th (local time) that the UK will introduce a 'carbon border tax' when importing steel, cement, aluminum, and other products with high carbon emissions. It will also announce countermeasures to respond to the US Inflation Reduction Act (IRA).

The UK government will announce 'Green Day,' a strategy to strengthen energy security and address climate change, on the same day.

The carbon border tax is a levy imposed on products imported from countries with weaker environmental regulations. It prevents countries with strict environmental regulations from losing price competitiveness and contributes to global carbon neutrality. Among developing countries, there is considerable criticism that the carbon border tax is a form of 'kicking away the ladder' by developed countries whose industries have already advanced.

The carbon border tax introduced by the UK this time is expected to cover steel, cement, aluminum, and other products with high carbon emissions, similar to the European Union (EU) system.

Measures to respond to the US IRA are also included. The IRA mainly provides tax benefits for electric vehicles that are finally assembled in North America.

Jeremy Hunt, the UK Chancellor of the Exchequer, stated in the House of Commons on the day, "We must protect domestic investment in response to the risks posed by the US's massive green subsidy policies," adding, "The government is preparing appropriate measures." He continued, "This does not mean that we should provide subsidies in response to subsidies," and added, "The UK must be an attractive place to invest."

This content was produced with the assistance of AI translation services.