Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of differentiating the emissions associated between pre- and post-consumer scrap metal in the UK Carbon Border Adjustment Mechanism.

As set out in our response to the consultation on the introduction of a carbon border adjustment mechanism (CBAM), imported scrap products within the aluminum and iron & steel sectors will not be within scope of the CBAM, upon introduction from 1 January 2027.

The use of scrap, either post-consumer products at the end of their useful life or pre-consumer products such as offcuts with no productive use other than as a feedstock for recycling, has a net benefit on emissions as it reduces the need for additional production. Therefore, the carbon leakage risk posed by such goods is low.