The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026

Debate between John Lamont and Pippa Heylings

Monday 12th October 2026 General Committees

[Pippa Heylings (South Cambridgeshire) (LD)]

We Liberal Democrats support the carbon border adjustment mechanism. We have long supported action to support businesses, create incentives to prevent carbon leakage and ensure that the transition to net zero is both environmentally effective and economically fair. That is particularly important for farmers and agriculture, especially after the summer of extreme heat that we have just seen. Over the past five years, farmers have seen the worst three harvests on record, so tackling climate change is at the top of their mind. They are acutely aware; they are long-term planners and they know that we have to do what we can.

That point brings me to our two concerns about the Government’s decision to introduce the regulations in this way and at this moment. First, we are concerned by the inclusion of fertilisers without confirmation of the rate. That risks imposing substantial additional costs on a sector that is already under immense cumulative financial pressure. In the context of prolonged conflict in the middle east and the closure of the strait of Hormuz, as well as the climate change pressures that I have mentioned, farmers are facing rising costs, volatile incomes and significant uncertainty.

[John Lamont]

The hon. Lady is right to identify the big challenges that farmers are facing. The last thing they need is up to £70 or £80 a tonne being added to the cost of fertiliser. Surely the Liberal Democrats should oppose the regulations until we get some clarity from the Government as to what the financial impact will be.

[Pippa Heylings]

That is exactly the point that I am raising, which is about uncertainty. The National Farmers’ Union has estimated exactly that cost, which will ultimately be borne by British farmers. At a time when they face such volatility and uncertainty, we should be strengthening our food security, not undermining it. We would like the Government first to tell farmers what that rate would be.