Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps his Department plans to take to help family-run farms with any increased costs associated with the Carbon Border Adjustment Mechanism.

Overall, the Government expects any impact on UK farmers to be modest. The level of the Carbon Border Adjustment Mechanism (CBAM) and impact on fertiliser prices is a function of the effective carbon price under the Emission Trading Scheme (ETS) for fertiliser producers, after accounting for Free Allowances.

Currently, fertiliser producers have high coverage by Free Allowances. What happens to Free Allowance allocations in the coming years is a matter for the UK ETS Authority.