UK considers import taxes to combat 'carbon leakage' but wants global deal

Sam Lowe, a senior research fellow at the Centre for European Reform, said: "In the real world we have to appreciate the EU is moving ahead unilaterally with its own carbon border adjustment mechanism, and we've seen a proposal from the Democrats in the US this week, of something similar."

"There is also talk of Canada proposing a Carbon Border Adjustment Mechanism unilaterally as well and in that context I don't think the UK can afford to put its head in the sand. It needs to engage with the world as it exists rather than how it wishes it to be."