Question to the HM Treasury:

To ask His Majesty's Government whether they still intend to implement the UK Carbon Border Adjustment Mechanism.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Yes, the government will introduce the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact that the EU Carbon Border Adjustment Mechanism will have on surcharges on goods and energy passing (1) between Great Britain and Northern Ireland, and (2) between Northern Ireland and the Republic of Ireland.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government plans to apply the UK CBAM across the whole UK, including in NI. The UK will continue to work with international partners, including the EU, to ensure our approach is implemented in a way that works for businesses. The EU CBAM could only apply in Northern Ireland with the agreement of the UK and in line with the democratic safeguards of the Windsor Framework.

For goods moving from Northern Ireland into the EU, guidance is a matter for the European Commission and EU Member States. The Commission website is the most up to date source of information and guidance.

The EU Commission have also published their own impact assessment of the EU CBAM which is available online.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the compatibility of the EU Carbon Border Adjustment Mechanism with the island of Ireland's Single Electricity Market.

Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)

The UK shares the EU’s concerns about the risk of carbon leakage and recognises the EU’s right to take action to address it. The Government plans to apply the UK Carbon Border Adjustment Mechanism (CBAM) across the whole UK, including in NI. The UK will continue to work with international partners, including the EU, to ensure our approach is implemented in a way that works for businesses.

The EU CBAM could only apply in Northern Ireland with the agreement of the UK and in line with the democratic safeguards of the Windsor Framework.

For goods moving from Northern Ireland into the EU, guidance is a matter for the European Commission and EU Member States. The UK have raised with the EU Commission the need for clarity on the practical implementation of the EU CBAM for trade in electricity, given the challenges involved.

The EU Commission website is the most up to date source of information and guidance.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what plans they have to link the UK Emissions Trading Scheme and the EU Emissions Trading Scheme.

Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)

Under the terms of the Trade and Cooperation Agreement (TCA), the UK Government and EU agreed to give serious consideration to linking our respective carbon pricing schemes and to cooperate on carbon pricing. As part of our reset with the EU the Government continues to explore all options to improve trade and investment.

The Government will work to reset the relationship with our European partners to strengthen ties that improve our trade and investment relationship with the EU and promote climate, energy, and economic security, while recognising that there will be no return to the single market or customs union.

Question to the Department for Business and Trade:

To ask His Majesty's Government what steps they are taking to prepare for the implementation of the EU Carbon Border Adjustment Mechanism on UK/EU trade from January 2026.

Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)

Following its transitional period, the EU Carbon Border Adjustment Mechanism (CBAM) will enter its definitive regime from January 2026. UK officials have been discussing CBAM requirements with the EU and engaging affected businesses to support them in responding to new requirements.

EU CBAM implementation and guidance remains fundamentally a matter for the European Commission and National Competent Authorities. The Commission website is the most up to date source of information for businesses seeking guidance on requirements https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en.

Businesses experiencing EU market access issues in relation to CBAM may wish to seek additional support via the Government’s UK Export Support Service.

Found: Bolton (The Chair); Lord Best; Viscount Chandos; Baroness Drake; Baroness Harding of Winscombe; Lord Teverson

Found: Bolton (The Chair); Lord Best; Viscount Chandos; Baroness Drake; Baroness Harding of Winscombe; Lord Teverson

Found: Best; Viscount Chandos; Baroness Drake; Lord Gilbert of Panteg; Baroness Harding of Winscombe; Lord Teverson

Found: tabled by Lord Alton of Liverpool, Baroness Kennedy of the Shaws, Lord Offord of Garvel and Lord Teverson

Found: was tabled by Lord Alton of Liverpool, Baroness Kennedy of the Shaws, Lord Offord of Garvel and Lord Teverson