A new EU carbon tax on electricity will lead to increased CO₂ emissions in Europe and cause a jump in prices for consumers in the bloc, the energy industry has warned.
The bloc’s Carbon Border Adjustment Mechanism (CBAM), which takes effect in 2026, will also reduce North Sea energy co-operation between Britain and Europe and deter investment in renewables infrastructure, according to an industry analysis of the tax.
“CBAM is becoming a regulatory nightmare,” said Adam Berman, deputy director of the industry lobby group Energy UK. “Putting an unwarranted carbon price on electricity exports to the EU sends a clear negative investment signal for North Sea infrastructure.”
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