Carbon Emissions

Treasury written question – answered at on 13 March 2024.

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Photo of Stephen Crabb Stephen Crabb Chair, Welsh Affairs Committee, Chair, Welsh Affairs Committee

To ask the Chancellor of the Exchequer, whether he plans to undertake a review of the criteria used to determine which industries are included in its carbon border adjustment mechanism proposals.

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

The government will implement a carbon border adjustment mechanism (CBAM) from 1 January 2027 to ensure that UK decarbonisation efforts lead to a true reduction in global emissions. The CBAM will apply a carbon price to relevant imported goods at risk of carbon leakage from the following sectors: aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron & steel.

In making the decision around the initial sectoral scope of the UK CBAM, the government looked primarily at three factors: inclusion in the UK ETS as the purpose of the CBAM is to ensure a comparable treatment of imported goods and domestic products from a carbon pricing perspective, carbon leakage risk, and feasibility and effectiveness.

The scope of the UK CBAM will be kept under review. Further details on the design and delivery of a UK CBAM, including the precise list of products in scope within the announced sectors, will be the subject of consultation in 2024.

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