To ask the Chancellor of the Exchequer, what steps he is taking to ensure that a potential EU carbon border tax is taken into account in negotiations on a free trade agreement between the UK and the EU.

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that a potential future EU Carbon Border Tax is taken into account in the UK-EU FTA negotiations.

The UK has set out a clear position on what it is seeking in the negotiations with the EU through the UK Approach to Negotiations publication. The Government wants a relationship based on friendly cooperation with both parties respecting one another’s legal autonomy. The Government also wants this relationship to be a long lasting one. Therefore, where relevant, the UK is of course considering any implications of future EU policy proposals on the future relationship agreement.

As a global leader on decarbonisation, the UK recognises the issues that the EU’s carbon border adjustment proposal could look to address, and the Government is monitoring the debate on possible designs with interest.