BCGA to explore impact of new carbon border tax

The British Compressed Gases Association (BCGA) will explore how the EU’s new Carbon Border Adjustment Mechanism (CBAM), often referred to as a ‘carbon border tax’, could affect the compressed gases sector during a webinar later this month.

CBAM is a major piece of EU legislation aimed at reducing carbon emissions associated with imported goods. It does so by placing a carbon price on certain imports, effectively encouraging manufacturers around the world to decarbonise their products and processes.

The policy applies to goods such as steel, cement and fertilisers, and is designed to create a level playing field for EU producers facing strict environmental rules.

The BCGA, which represents the UK’s industrial and medical gases sector, will examine how CBAM relates to compressed gases and their associated supply chains during the webinar on 26 June, from 12 to 2pm (BST).

The event comes shortly after a UK-EU trade arrangement in May that set out plans to link the two carbon markets, helping to avoid double taxation on carbon-intensive goods and protect UK industry. 

At the time, the government said the agreement would save £800m (around $1bn) in taxes and shield British steel from EU tariffs, supported by a UK-only deal worth £25m ($32m) per year.

Topics during the webinar will include compliance obligations, reporting timelines, and practical steps for companies to prepare. A Q&A session will follow with expert speakers from Luxfer, Eversheds and Messer.

Ellen Daniels, CEO of the BCGA, said CBAM has broad implications for the sector.

“It is essential for businesses in our industry to understand how it will affect imports, compliance obligations, and supply chain decisions,” she said. “CBAM marks a milestone in global climate policy, with carbon costs now integrated into international trade.”

Daniels also warned that the complexity of the legislation, which spans over 200 pages, may require organisations to dedicate extra resources to meet the reporting requirements.

Speaker Catherine Manning from Eversheds will cover policy aspects and upcoming developments related to UK and EU CBAM rules. Luxfer’s Paul Hardiman will focus on practical challenges faced by UK-based exporters, while Tim Evison from Messer Group will offer a perspective from within the EU, reflecting on how the mechanism has played out since its introduction.

“CBAM is intended to prevent ‘carbon leakage’, where companies move production to countries with weaker climate rules, which undermines the EU’s climate goals,” Daniels added.

More information and registration details are available on the BCGA website.

source: gasworld