Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether his Department has made an assessment of the potential impact of compliance with the EU’s Carbon Border Adjustment Mechanism requirement for accurate carbon emissions data from complex supply chains on small manufacturers.

We recognise that reporting requirements of the EU Carbon Border Adjustment Mechanism (CBAM) are having incidental impacts on some UK businesses exporting to the EU.

EU CBAM implementation and guidance remains fundamentally a matter for the European Commission. The Commission have proposed changes to EU CBAM which are intended to exempt most small businesses and make reporting requirements easier to comply with. The Commission intends to undertake a full review of its CBAM later this year, which we will watch closely.

The Commission website is the most up to date source of information for businesses seeking guidance on requirements: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en.