Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to provide exemptions to Developing Countries Trading Scheme countries for Carbon Border Adjustment Mechanisms.

The UK has no current plans for an exemption from the Carbon Border Adjustment Mechanism (CBAM) for least developed countries (LDCs). UK imports from LDCs make up a very small proportion of total CBAM imports, approximately 0.03% (HMRC origin data 2023). Using a range of sources the Government estimates that, on average, less than 1% of LDCs’ total exports of goods from CBAM sectors are exported to the UK.

The UK will continue to engage with its trade partners, including LDCs, ahead of the introduction of the CBAM.