Government under pressure to set up green levy on UK imports

A British steel factory. The levy would ensure UK manufacturers obliged to cut their emissions are not undercut by products from countries with lighter climate rules. Photograph: David Jones/PA

Ministers are under growing pressure to firm up plans for a green levy on imports to the UK before the general election campaign.

The government is consulting on plans to introduce a carbon border adjustment mechanism (CBAM) from 2027. Under the system, overseas companies wishing to export key goods to the UK would have to show they were paying for their carbon emissions, or face a levy equivalent to the price paid for carbon by UK manufacturers.