A Carbon Border Adjustment Mechanism (CBAM) could raise up to £3.3bn per year, if Government implements one in line with recommendations from the Commission for Carbon Competitiveness.
Independent modelling from Frontier Economics shows the potential revenue a CBAM could generate.
Government announced its first step towards a CBAM in December 2023, but the Commission – a cross-party and cross-industry coalition – is calling on Ministers to go further to realise potential benefits.
The Commission for Carbon Competitiveness, chaired by John Penrose MP, works to deliver practical solutions for how the UK can reach net zero without undermining the competitiveness of UK manufacturing.