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

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the report of the House of Lords Economics Affairs Committee, The Price of Power: Reforming the Electricity Market, HL 113, published on 24 February 2017, if his Department will make an assessment of the extent to which emissions have been exported from the UK to other countries as a result of the relocation to those countries of UK energy intensive industries.

As set out in the Industrial Strategy green paper, the Government will set out in 2017 a long-term roadmap to minimise business energy costs. We are already taking a range of measures to protect industry from the risk of competitiveness impacts and carbon leakage – where emissions are exported to other countries - due to energy and climate change policy.

This includes a package of relief for energy intensive industries (EIIs), such as steel and chemicals, whose competitiveness may be impacted by the effect of energy and climate change policies on electricity costs.

In addition, under the EU Emissions Trading System, carbon allowances are allocated for free to sectors judged at risk of carbon leakage because of their high carbon and trade intensity.

The Government will respond to the House of Lords Economic Affairs Committee’s report in due course.