Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what alternatives to a Carbon Border Tax or a Carbon Border Adjustment Mechanism she is considering to incentivise behaviour change in producers and manufacturers.

As set out in our Industrial Decarbonisation Strategy, we are continuing to assess a range of potential options on the issue of carbon leakage. We will be publishing more analysis on the possible risks of carbon leakage to the UK and possible mitigation options in due course.

The UK’s ambitious carbon pricing mechanism - including our new UK Emissions Trading Scheme (UK ETS) and Carbon Price Support mechanism – is also a fundamental component of our Strategy. We are committed to reviewing the UK ETS to ensure it aligns with our Net Zero commitments. This will include reviewing our current approach to providing at risk sectors with free allocations.