MPs on the Commons Environmental Audit Committee (CEAM) called for the tax as a way to stop domestic firms from “offshoring” their emissions. Taxes are currently imposed on carbon emissions from UK-made products.
In a report, the MPs said that putting a price on imported carbon can incentivise sectors to move away from carbon-intensive practices and promote behavioural changes towards the creation of more low-carbon products.
Currently, the UK’s emissions figures do not include carbon from imports, which understates the true picture of the carbon associated with UK consumption.
CEAM acknowledged that the extra charges could be passed onto consumers without greater incentivisation for the development of more low-carbon products to ensure people are not adversely affected by higher prices.
It added that that some sectors are hard to decarbonise and will need greater support. “A one-size fits all approach is unlikely to suffice,” it said.
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