The EU is introducing a carbon border adjustment mechanism (CBAM) on 1 January targeting imports produced using carbon-intensive methods, such as steel, glass and fertiliser. Businesses have been concerned about the impact of the EU tax on UK consumer bills and the prospect of cheap goods originally destined for Europe, such as Chinese steel, flooding the British market. The UK is introducing its own version of the tax but not until 2027.
Government figures released on Tuesday showed it issued 328,727 such licences last year, at a cost of between 113 and 200 each. That would put the total cost to business at somewhere between 37m and 65m.