Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what assessment his Department has made of the potential impact of the UK Carbon Border Adjustment Mechanism on the defence industry.

The Carbon Border Adjustment Mechanism (CBAM) is led by HM Treasury and administered by HM Revenue and Customs. While the Ministry of Defence has not made a formal assessment, we have engaged with defence industry partners who have raised the potential impact of CBAM on the defence sector, including compliance costs and the administrative burden on suppliers. The Department continues to work with HM Treasury, HMRC and industry to ensure these effects are understood as CBAM is implemented.