Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the adequacy of the additional support measures for industries covered by the UK Emissions Trading Scheme in ensuring the (a) environmental and (b) economic sustainability of Welsh industry.

The UK ETS Authority is committed to protect our industry, including those in Wales, from carbon leakage as our economy decarbonises which is why we give free allocations to businesses at risk of carbon leakage under the UK ETS.

We have guaranteed free allocations at current levels until 2026 and are now consulting on changes to better target free allocations at sectors most at risk of carbon leakage from 2026 whilst maintaining their decarbonisation incentive.

A Carbon Border Adjustment Mechanism will also be introduced by 2027 and will work cohesively with the UK ETS to mitigate the risk of carbon leakage.