Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the UK Emissions Trading Scheme Authority's analysis of the ceramics sector’s carbon leakage risk.

The UK ETS Authority is currently conducting a review into free allocations, the UK’s primary carbon leakage mitigation method. As part of this review, in December 2024 the UK ETS Authority consulted on two approaches for assessing carbon leakage risk. The UK ETS Authority invited feedback and engaged with industry representatives, including those in the ceramics sector, on the robustness of the data and methodology used. An Impact Assessment will be conducted and published alongside final decisions by the end of 2025.

The UK Government and the ceramics sector have also recently inaugurated a working group, enabling direct dialogue with ceramics manufacturers.