Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Carbon Border Adjustment Mechanism on fertiliser prices for farmers.

The previous government announced the introduction of CBAM in 2023, in order to protect UK businesses producing carbon intensive goods domestically.

In recent years, UK-based fertiliser manufacturers have received sufficient free allowances to cover their emissions, and therefore have not in practice paid the carbon price.

This means that the CBAM rate, which will be set out later this year will be substantially lower than some external organisations are suggesting.