On January 1 next year the EU introduces new high tariffs on many imports. Called a carbon border adjustment mechanism, an importer next year will have to pay around Euro 80 per ton of carbon embedded in products including iron, steel, aluminium and cement, with the range of high energy using goods being expanded over time to cover most of the things that generate plenty of CO 2 in their production and shipping. The idea is the EU wants to deter people from buying imports of things that incur a carbon tax when produced in the EU itself. It also wants a new source of revenue and a new barrier to trade.
The good news is the UK will not be introducing this tax on 1 January 2026, sparing UK consumers and importers the extra burden and dearer prices it would bring. We have no need to do this, no need to inflame trading partners around the world with a new tariff like tax.
The bad news is the UK does plan to introduce a look alike tax or tariff on 1 January 2027. The current UK carbon tax rate is £42 a ton of embedded carbon or Euro 49, lower than the EU level of Euro 79. However, the UK is also saying it wants to join the EU carbon trading system or align with it, so this year the UK carbon price has risen 58% and the EU price just 5%. If the UK perseveres with its self harming policy there will be more larger rises in the UK carbon price ahead until it reaches the EU levels. These rises make domestic production much dearer as well as imports under cbam.
The UK carbon tax will cover aluminium, cement, fertiliser, hydrogen, iron and steel but not glass and ceramics. Doubtless the aim will be to expand its coverage and up its rate as time passes. The government wants the revenue and this is a new excuse to tax the consumer and the businesses involved. The things covered are basics, and will hit the costs of construction hard at a time when the government says it wants cheaper homes and more affordable infrastructure.
The importers have to buy and surrender certificates or pardons for the associated carbon in their imports. The UK will gradually force the carbon price higher by reducing the amount of free certificates it releases to UK producers of these products, who will then need to compete with the importers more intensely to acquire certificates. More de industrialisation to come as a result of this anti jobs policy.
October 22, 2025
Let’s hope that something happens to remove this appallinly useless and incoherent administration and we replace t with one that is more pratical and sensible .Cancelling this dotty impost
October 22, 2025
This is what happens when you offshore all your manufacturing . Put thousands out of work then impose high taxes on thins we no longer manufacturer. I bet there’s no tax on the flood of Chinese cars that are destroying what is left of our motor industry.
Agenda 30 is coming along swimmingly. Er won’t be able to afford to breathe with the shower of bovine excrement in power.
So much low hanging fruit for Reform to attack when they oust the uniparty.
October 22, 2025
@David Peddy & @IAN WRAGG +1 – A parliament of 650 MP’s and their appointed Government fighting the People the Country. Is that because fighting is easier then working with?
October 22, 2025
easier to nod and say ‘yes sir’ than to engage brain and argue a point.
October 22, 2025
Is this not the first UN imposed Global Tax? They were thwarted in their proposed Airline tax by Trump.
They seek to have direct income.
The UN needs to be disbanded.
October 22, 2025
Plus we already have the appalling and evil WHO Pandemic Accord!
October 22, 2025
Agreed.
October 22, 2025
Sir John,
Why can’t the EU and our government just be honest and admit, they have, and continue to, waste ever increasing amounts of money and so dream up ever more ridiculous ways of relieving the population of their money so they can waste more and more of it.
We are rapidly approaching the point when, the Gangster State is taking more of it than we are being left with. In effect, we are just being left with pocket money.
October 22, 2025
Waste most of it and often far worse spend it doing real net harms – net zero, worker right bill, Covid “vaccines”, Covid Lockdowns, sick joke enquiries like the Covid one, ever more red tape, VAT on school fees, rigged energy markets, the equality acts…
Interesting that we have load of largely EU red tape to make equipment like kettles, vacuums, boilers, irons, tvs… more energy efficient and yet we now have a trend for wireless phone charger which waste about 30% of the energy. Even worse if you charge a battery and then use that portable battery to charge the phone battery (like Magsafe type devices) circa 50% or so can be wasted.
October 22, 2025
I have a mobile phone support battery which can also be recharged itself, for recharging a mobile if needed on the fly.
I have used it maybe once or twice a year.
I fail to see why this product can be seen as wasting energy.
October 22, 2025
Cliff
Absolutely agree, the problem is all of this tax complication costs everyone a vast amount of extra money, frustration, and delay, it puts up the price of goods for the customer, and costs an absolute fortune to administer, so the financial gain is minimal.
Taxes should be as simple as possible to understand, administer, and collect.
A few years ago we had 22,000 pages of taxation explanations, goodness knows how many we have or need now.
October 22, 2025
Accepting more EU complicated nonsense would be crazy. Even if such a scheme made sense, excluding glass and ceramics would be similarly daft. Both glass and ceramics manufacturing generate high levels of CO2 owing to the extremely high temperatures required for production and the chemical composition of the raw materials.
The EU creates many things opposed to UK interests, and the current government favours the EU above the citizens it is supposed to represent. Reform is needed to sort such a mess out.
October 22, 2025
No, it shouldn’t impose new tariffs.
Net zero is such a scam. We all pay, only the few get the benefit of our payments, and this transfer is deliberately hidden from us.
From power bills that don’t show how much subsidy the consumer is paying the green grifters, to carbon tax/tariffs that artificially lift prices for all, we are metaphorically left in the dark about the real cost and harm of this scam.
Ironically it will probably leave us physically in the dark, when our most expensive electricity in the developed world runs out on winter days.
I do think more people are becoming aware that this costs them dear, but so far not enough to force a change of policy. Our leaders continue to support Agenda 2030, and not their own people’s interests.
October 22, 2025
Wanderer. I’ve just been reading that there massive solar farm just approved by Milibrain against massive push back from locals is owned by labours biggest donor. Robbing the masses to enrich the few is certainly the aim of net stupid.
Wr now know where Milibrain will be working when he’s ejected from parliament at the next election.
October 22, 2025
‘working’ or getting paid?
October 22, 2025
There is clearly no really logic to the hugely subsidised “renewables” agenda when no subsidies is needed perhaps. So it must surely be driven by deluded zealots or vested interests, bribes, party donations, “consultancy” fees just follow the money – rather like the net harm Covid “vaccines” coerced even into young people, pregnant people, children and people who had already had covid without issue!
October 22, 2025
Yes, a dreamt up tax to pay for an ever more money-hungry beaucracy. It’s not as though they spend it on defence.
When Europe sees what happens in the UK when we remove the socialists there’ll be a flood of similar changes.
October 22, 2025
Grooming gangs inquiry ‘won’t be watered down’, home sec vows – as more survivors quit panel. It clearly already has been Ms Mahmood!
Shamama still says “Asian grooming gangs” rather than “Pakistani rape and torture gangs”. 60% of the World is Asian Shabana. Saying Male gangs would limit it more. Does she really think that Labour will retain Muslim votes by this appalling two tier justice, appeasment and her weasel words. Does she beleive that even most Pakistani people support covering up what happened to these raped and abused girls? I do not.
Blair/Brown thought Labour would gain support in Scotland with the appalling devolution bill but predicably they went to the SNP.
October 22, 2025
Slightly off-topic, I see in today’s European Conservative that the EU has blocked Germany’s plan to build 20Gw back-up gas power stations to reduce their reliance on French nuclear-powered electricity (when the weather is wrong for renewables). The EU has said they can only build 12.5Gw plants.
Hopefully another EU own goal.
October 22, 2025
Strange decision as the EU have said that gas is green.
October 22, 2025
Well I do not want to see EU own goals I want to see Europe thrive – but they do are in a doom loop with to much government and very bad misdirected government too!
I love Europe but had what the EU has & is doing to it. Some good coming out of Italy at least perhaps I should move. I can even get an Italian Passport as my wife has one. But I have to pass an Italian test I might struggle to do that. Perhaps I can get some OAP exemption?
October 22, 2025
I am against carbon taxes full stop. They serve no purpose other than to generate revenue and the countries imposing carbon taxes might as well just up the VAT rate
Britain should not impose any carbon taxes at all. Refusing to do so will help to offset the most expensive electricity in Europe, which is caused by having to burn imported gas for ~40% of our juice
October 22, 2025
Britain has the highest proportion of renewables of any major economy and the highest electricity prices of any major economy and you think the price of gas is to blame ? Ha ha.
October 22, 2025
Correction: Is caused by paying millions (or is now billions) in subsidies to the renewable energy suppliers.
October 22, 2025
The new First Sea Lord, General Sir Gwyn Jenkins has launched an urgent 100-day drive to tackle the systemic submarine maintenance delays which are afflicting the Royal Navy
There have been several lengthy periods in the last few years when the RN has not had a single SSN at sea. Currently, only one of the six Astute boats in commission is operational and four are at very low readiness. Maintenance backlogs have also forced the four Vanguard-class SSBNs to remain on deterrent patrol for six months or more – almost doubling their intended length – placing additional strain on crews and equipment
The FSL warned that the current situation on submarine availability was undermining combat readiness across the RN, Royal Marines, the RFA and the wider MoD
Jenkins’ decision to place his personal authority behind this initiative reflects a recognition that the situation has become untenable. He will likely find himself up against a government system enabled by civil servants, quangos, unions and lawyers, many of whom are addicted to bureaucracy, inertia, risk aversion and adherence to process over common sense
Whether his ‘100-Day Challenge’ can overcome years of decline and restore the credibility of the UK’s submarine capability will be a critical early test of his leadership
Source; Navylookout.com
October 22, 2025
It makes a joke of our military. And of course hostile actors are well aware.
October 22, 2025
Has deluded Mr Miliband demanded they are converted to battery power with under water charge points!
Reeves’s doom loop economics continues, inflation rises, interest rates rise, taxes rise, benefit claimant rise, employment falls, tax revenues falls, government debt interest rises, government borrowing rises, the wealthy and hardworking leave or work less, the black tax free economy and bartering grows…
October 22, 2025
No, we shouldn’t.
It will force up costs; drive inflation and achieve nothing positive for the UK whatsoever.
Which is why the lunatics in the Government will do it.
October 22, 2025
Yes, but if it does as the EU bids that’s reason enough.
October 22, 2025
Now that the dark nights are approaching, expect the fossil fuel cartel and their lackeys, the net stupid Reform anti-swans limited company, to start the annual “blackouts” scaremongering
The UK has ample electricity backup for even the most savage winter. Which is unlikely. Early this month an area of high pressure over the UK prevented much N Sea windfarm generation for 3 days. The UK’s installed CCGG plant, battery storage, biomass, solar and the 10 interconnectors provided ample electricity. There were NO blackouts
Ed Miliband, the SoS Energy Security and Net Zero, has been reported as proposing that the 5% VAT imposed on domestic energy bills be scrapped. He is also in favour of extending the “De Minimis” threshold for small businesses, so that more of them can reduce the 20% VAT business rate to 5%
Source: https://www.gov.uk/guidance/vat-on-fuel-and-power-notice-70119#gases
October 22, 2025
I think I will keep that smokeless fuel (I’ve got in the shed) just in case though SG, as I’m afraid I do not share your faith in renewables…
October 23, 2025
As Simone Rossi of EdF pointed out to the ESNZ Select Committee demand has been falling. That is the only reason we didn’t run out of capacity so far: lots of industrial closures, and consumer price rationing.
However, the fact that during the recent Dunkelflaute period in mild weather, we ran CCGT plants for export to Denmark, Belgium and the Netherlands indicates a shortage of dispatchable capacity on the Continent, particularly in Germany (see the comment about the EU refusing to allow Germany to invest to counter that). So if we get to a cold Dunkelflaute there is likely to be a Europe wide power shortage, and we will be bidding for who implements demand reduction a.k.a. power cuts. We’re running out of industry to close down.
I note that DESNZ are now starting to panic (too late) about capacity shortage with their plans for a separate auction for newbuild capacity. With the backlog of plant orders it will not produce anything this side of 2030.
October 24, 2025
We had 3 blackouts yesterday.
No ‘scaremoungering’ required.
October 22, 2025
Net Zero is a bureaucrats wet dream. There is nothing they can’t introduce or weave into our lives by invoking Net Zero.
Make no mistake every levy and tariff levied on imports is nothing other than an attack on free trade.
That is an area of expertise the EU has been a world leader in for the past 25 years. It is one of the reasons the EU now accounts for less than 10% of world trade down from 26% back in 2000.
October 22, 2025
No – we would be better being the Ireland of net zero and reduce carbon costs for businesses operating here.
However if we are to persist with net-zero policies then we should impose those costs on those who produce goods elsewhere through tariffs. Carbon either is an issue or it isn’t. If it is charge. If not leave us alone.
October 22, 2025
Good morning
Tariffs if used correctly to deter other nations bad practices is one thing, using them to level a playing field that you have already ranged against you is another.
It is just another tax grab that will backfire.
October 22, 2025
The Labour and Conservative parties both agreed that Trump’s tariffs were A VERY BAD THING but were both quite happy to put up their own tariff barriers via the carbon border tax. Just as Trump’s tariffs will be paid by USA consumers so the carbon border tax will be paid by UK consumers.
I see Reeves is so desperate for money she’s coming after lawyers and GPs who avoid NI via LLPs. That should be good fun – I assume the GPs will strike and demand a massive pay rise in compensation and the lawyers will scupper the plan via their MP and Lords members. Still, worth a try to tax these overpaid Labour-voting professions.
October 22, 2025
So we shut down our own heavy industries with high energy costs and then increase the cost of importing raw materials into the UK. This will accelerate the death of manufacturing in this country and push inflation up even higher. Good God, we’ve developed a new species of Moron to govern us.
October 22, 2025
“new barrier to trade.” no surprise there. That is what World Trade through the eyes of the EU, China and India is about – protecting home markets.
October 22, 2025
Let’s force all our manufacturing industry offshore to prevent CO2 being generated in the UK. Then someone points out that the CO2 is still being generated in China, so we rush to tax the goods and materials being imported. Here is a crazy thought: would it not be better to produce those goods in the UK?
October 22, 2025
Another example as if one were needed showing how we are stuck in the orbit of Europe – it’s a geographical thing and will always be there – it was foolish to think otherwise.
October 22, 2025
Did the UK Parliament of some 650 MPs honestly believe when they banished production from the UK and they had no viable replacements for those commodities the consumer would just give up?
The production and delivery of a Chinese produced EV vehicle has been shown to emit more pollution than a UK produced ICE. One is banned one rewarded by Parliament ensuring they receive diminishing taxpayer funding. Once more we have 650 MPs said to be working for and on behalf of the UK, actually fighting the people, fighting logic and fighting against a UK’s future – they don’t think things through.
Then again as recent rumblings and media hype in recent days has demonstrated we have 650 MP’s all wishing, desiring to Kowtow to their new masters in China before doing their job
October 22, 2025
I doubt a majority of MPs believed it, however 3-line whips being what they are we suddenly get hundreds of sheep in the chambers.
October 22, 2025
It’s an unacceptable proposition and should be abandoned immediately. Starmer’s proposed introduction of a similar tax from January 2027 is outrageous. It’s quite bizarre to witness Labour destroying our industrial base because of Net Zero, forcing more imports, only to slap a carbon tax on said imports! It’s madness. Prices will increase as will the cost to consumers yet Starmer and Reeves want growth? And all this on the high altar of reducing carbon emissions. Why copy a regressive and pernicious tax dreamt up by some climate ideologue in Brussels? We are no longer part of the EU, thank god.
October 22, 2025
“Inflation has remained locked at 3.8pc for the third month in a row”. It would appear that the BoE is great on rhetoric but lousy at its job. Missing targets by 10% in most enterprises is a sackable offence, missing them by 80% and we get a shrug of the shoulders and a “who else can we blame”.
How long does the UK have to endure this type of consistent failure?
October 22, 2025
Until the end of this Parliament, unless of course the people rise up as they should.
October 23, 2025
RPI was 4.5%.
October 22, 2025
OFT, but illustrates the UK’s Parliaments ‘Chinese Syndrome’ of control and monitor the people. The lie of keeping you safe when it is the opposite, the UK Government is in so much fear of the People they wish to force an ‘online safety act’ on the nation that exposes everyone and does the complete reverse to their ‘lie’
‘The European Data Protection Board (EDPB), which monitors tech privacy, said British demands to break Apple’s encryption “would create systemic vulnerabilities and pose a risk to the integrity and confidentiality of electronic communications.” ‘
That is all communications including the new Digital ID. A Parliament fighting the People
October 22, 2025
Although this is the EU’s view, it creates a situation of any UK Organisation wishing to transfer data between the EU & the UK. If allowed there will be more hoops and costs. Another nightmare
The UK Parliament under pressure from the Whitehouse & JD Vance have since watered down things, but are still pushing on and is looking at ways to increase unfettered surveillance on UK Citizens in away that circumvents the concerns of those outside the UK.
The Lie that is peddled by our UK MP’s is that keeping us safe online is the intention, then doing the opposite by pushing to enable them and their authorities to spy on every individual without reason, suspicion or cause. Nothing they have said or done to date has anything to do with keeping the UK Citizen safe, it has been about them ‘thinking’ they are keeping themselves personally safe – in fear of the people. Instead they have done everything in their power to open backdoors to all those that seek to endanger the UK
October 22, 2025
Back to wattle and daub building methods then!
October 22, 2025
Simple. Tax French and German wine at 300% and import wine free of tax and tariffs from Australia (excellent champagne, reds, stickies and liquers), New Zealand (excellent cool climate whites), Chile, Argentina and the USA. Ditto cheeses from Australia and New Zealand. These two measures alone would immediately bring the EU back to reality.
October 22, 2025
Agreed but apply tariffs on imported cheeses, UK makes excellent any cheese we ever want to eat.
October 22, 2025
Socialism depends upon making and keeping people poor. Hence high, wasteful spending to justify high taxation. CBAM is simply another Net Zero tax to impoverish and control which has been introduced once these industries have been forced offshore by high U.K. energy prices. Eventually it will apply to everything and everyone will be controlled using a carbon credit system. The wealthy will be able to buy carbon credits to keep their lifestyle and those that sell them will be able to eat. There is no climate crisis. Climate history and the real, not consensus, science shows no correlation between CO2 and global temperature. Additional CO2 has little if any warming effect even using the IPCC’s false radiative warming theory (Happer & Wijngaarden). Water vapour is a far bigger greenhouse gas than CO2 and there’s no CBAM to reduce the amount of water vapour in the atmosphere (yet).
October 22, 2025
At least it’s an attempt to create a slightly more level playing field. A far better attempt to do so would be to reduce the burdens on home industry which have been piled on over the last 20 years
October 22, 2025
The UK should not impose any carbon tax, least of all one that mirrors the EU. But with the current economic lunatics in government, they will. Yet another blow to their so-called growth agenda.
The UK taxpayer and businesses are already being squeezed too hard by taxes and regulations. If Labour keep growing the public payroll, the market will eventually only lend to us at stupid rates of interest, and then the economy will collapse. Have we ever had such ignorance and stupidity in a government?
October 22, 2025
certainly free trade needs to be modified to take account of the pollution in the manufacture of things, and the power supplied to their factories, use of child labour, use of intellectual property (like software) without paying the proper licence fees, amount of safety kit used, so that there is more of a level playing field between potential makers here in the UK and their competition in China and India. it is almost certain that our leaders will have produced very substandard version of this.
October 22, 2025
one in one out and one back again
October 23, 2025
The CBAM will produce all manner of distortions, many largely unpredictable. Exporting countries will of course make false declarations in a bid to create advantage for themselves. Businesses that process imported supplies will be subject to sudden unexpected price increases which are likely to undermine their viability, leading to a loss of jobs, and likely whole industries. The only growth industry will be the administration of the tax. Incentives for smuggling and evasion (declare the source as low carbon South America, not high carbon China) will increase. Likely also to result in extended corruption to turn a blind eye to such attempts.
Meanwhile consumers will suffer a loss of availability of many items, and much higher prices. I wonder how long the EU thinks it can get away with it. It won’t just be farmers protesting.
October 23, 2025
One thing I noted from the ESNZ Select Committee hearing was that some of the Big 6 supported looking at the idea promoted by Stonehaven and Greenpeace to park gas generation in a special vehicle, with remuneration via and RAB arrangement, taking it out if the capacity market. The big idea was that it would stop gas setting the wholesale price, in a misunderstanding of how the market now works. There’s nothing like relying on academics who have no market experience. They also thought it would allow gas procurement to be cheaper: that is unlikely because they won’t hire top talent and will constrain the purchase policy in ways that will likely make it more costly.
But the interesting thing when you dig into their methodology is that they propose that gas generation should be exempted from carbon tax in their system. This is of course exactly what Claire Coutinho has proposed, but in a socialist nationalisation wrapper. It accounts for more than their £5bn projected saving (possibly because of the inefficiencies of their scheme). It would be much simpler if they followed her suggestion to axe the tax, reducing the cost of hedging across all electricity supply, not just lowering the cost of actual gas generation.
What they failed to understand is that the main role for gas in electricity markets other than covering for intermittent renewables supply is providing the cheapest available hedges to retailers and their customers. Remove that, and hedging cost would increase substantially, or simply be unavailable as it was during the energy crisis. Prices would become highly volatile.
October 23, 2025
I see that Tony Blair has now endorsed the idea of trying to pursue cheap energy at the expense of ditching net zero policy. It seems Claire Coutinho garnered attention in unexpected quarters: he has essentially endorsed her approach without admitting it. We can now expect the quangocracy to develop countermeasures to protect their position.