MPA responds to government proposals for a UK CBAM

MPA responds to government proposals for a UK CBAM
13 June 2024

Government proposals for a UK carbon border adjustment mechanism (CBAM) have been welcomed by the UK cement industry, but the Mineral Products Association (MPA) and UK Concrete say it has to happen by 2026.

A CBAM in the UK is also important to reduce the risk of high-emission cement undercutting domestic production and flooding the UK market. Cement imports already account for 30 per cent of the UK market (3.6Mt) and, according to analysis from the MPA and UK Concrete, have accelerated in recent years from Turkey and north Africa.

The MPA has requested:
• UK CBAM to be introduced in 2026 rather than 2027 as currently proposed to match the start of the EU CBAM, and prevent the diversion of imports in 2026 from the EU to the UK to avoid EU charges
• importers of cement to fully measure and report embodied emissions as domestic producers do
• clarity on the calculation of CBAM rates to ensure these do not result in under- or over-payment of CBAM liability for different products
• greater transparency in UK trade data to enable cross checks of any default values introduced. Currently almost all (95 per cent) of cement imports are listed as being from a “confidential country”
• strict enforcement procedures and high penalties for non-compliance to deter circumvention of the law.

The MPA says that UK cement producers have shown substantial commitments to transitioning to net zero to meet the UK’s 2050 ambition. The rise in cement imports comes at a time when the UK cement and concrete industry has already cut carbon emissions by 53 per cent since 1990, claims Politics Home.

Dr Diana Casey, MPA executive director for energy and climate change, said: “A well-designed CBAM is vital to maintain the level playing field and ensuring competitiveness of domestic cement production while it continues its transition to net zero. A failure to align with EU CBAM 2026 timing will potentially expose the UK industry to a surge in imports. 

Published under Cement News