The UK government has announced a new Carbon Border Adjustment Mechanism (CBAM) that will impose a levy on carbon-intensive imports such as steel, aluminium, and cement from countries with lower environmental standards.

The move is designed to prevent 'carbon leakage' and ensure that British firms investing in decarbonization are not undercut by cheap, high-emission imports from abroad. The revenue will be used to fund further green industrial grants.

"We are leveling the global playing field for green industry," said the Chancellor.