UK and EU poised to strike deal sparing British business from carbon border tax

The EU is introducing a carbon border adjustment mechanism on 1 January targeting imports produced using carbon-intensive methods, such as steel. Photograph: Jeff Morgan/Alamy

The EU and Britain are poised to agree a deal sparing British businesses from a carbon border tax being introduced in 2026, with officials targeting late spring for the next EU-UK summit.

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.