The UK government planned to implement a Carbon Border Adjustment Mechanism (CBAM) in alignment with the European Union, but this step will be delayed until 2026. The delay could significantly impact the country's high-emission steel producers.

UK Steel's Director General Gareth Stace has warned that the delay may emphasize that producers in Asia and the Middle East might seek to avoid the European mechanism by diverting their steel exports to the UK.

The UK's CBAM policy covers a different range of sectors than the EU's, and this disparity may increase the risk of carbon leakage and have serious implications for the national energy market.