Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether she has made an assessment of the potential implications for her Department’s policies of the recommendations in the report entitled Fixing the Carbon Leak published by the Commission for Carbon Competitiveness in July 2023.

The Government welcomed and noted the Commission’s report, which made recommendations on a UK carbon border adjustment mechanism (CBAM) and the UK Emissions Trading Scheme (UK ETS). In December 2023, the Government announced that it would implement a CBAM by 2027 and consult further on this in 2024.

In December 2023, the UK ETS Authority launched consultations on the approach to both free allocation and market policy, seeking views on how the Authority can best target support to industrial sectors at risk of carbon leakage and on market stability mechanisms, including the design of the cost containment mechanism.