Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he considered introducing (a) carbon leakage protections and (b) carbon border adjustment mechanisms before extending the UK Emissions Trading Scheme beyond 2030.

The Government is taking action to continue to mitigate the risk of carbon leakage for UK industry, including working with our international partners to develop a coordinated approach to carbon leakage. The Government also continues to provide protection against carbon leakage through domestic measures, currently reviewing with the UK ETS Authority the approach to the provision of UK ETS free allocation to industrial sectors to ensure it remains fit for purpose, and introducing a UK Carbon Border Adjustment Mechanism in 2027. The Government is committed to ensuring that industry can invest in decarbonisation with confidence that this will not be undermined by the risk of carbon leakage throughout the decarbonisation process.