There is a critical need for a well-designed UK Carbon Border Adjustment Mechanism (UK CBAM) to safeguard the domestic steel industry. The organization has been a proponent of implementing a UK CBAM since 2021 and has now released a report outlining key design principles to ensure the policy effectively addresses carbon leakage risks.

The UK government has confirmed plans to introduce a UK carbon border by 2027, this is vital to establishing a level playing field on carbon costs for the steel industry. However, the industry group warns that if the UK CBAM is not properly designed, it could lead to an influx of high-emission steel imports that undercut the domestic market, undermining the government's net-zero ambitions.

Therefore, there is a need to provide a framework for designing a UK CBAM that works for industry, government, and consumers, while offering necessary carbon leakage protection and enabling free trade. The organization looks forward to collaborating with the government to ensure the UK CBAM effectively shields the domestic steel industry from high-emission imported steel, fostering a fair and competitive environment.