To ask the Secretary of State for Business, Innovation and Skills what assessment he has made of the likely effects on competition in the European cement industry of the European Commission's proposal for a hybrid clinker benchmark for Phase III of the European Union Emissions Trading scheme.

The European Commission's proposal for the free allocation rules for Phase III of the EU Emissions Trading System (EU ETS) was sent to member states on 22 October. My officials, along with officials from the Department for Energy and Climate Change, are in the process of analysing the proposal in detail in order to assess its impact on UK industry, including competitiveness issues. I have met with representatives from the UK cement sector in order to discuss the proposal and ensure that we have a full understanding of the implications of the proposed approach. Officials from both Departments will also be having discussions with the European Commission on this issue.