The European Union's Carbon Border Adjustment Mechanism: challenges for the UK

The entry into force on January 1, 2026 of the Carbon Border Adjustment Mechanism (CBAM), which is the most important tool of the European Union Green Deal, may have a significant negative impact on the economies of the partner countries of this integration association that supply carbon-intensive goods to its market. In the article, on the example of Great Britain, an analysis of the current state and problems of development of the industries of this country that fall under the CBAM is carried out. The possible negative consequences of the introduction of this mechanism for the economy of this country are revealed. The key directions for minimizing the negative consequences of the entry into force of the CBAM for the British economy have been identified. The article will be of interest to researchers studying the transition to a green economy in the European Union, as well as to economists who analyze the impact of the introduction of a carbon tax by the European Union on foreign trade and economic development of countries exporting carbon-intensive goods to its market.

Carbon Border Adjustment Mechanism (CBAM), European Union (EU), EU Green Deal, UK, steel industry