Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 28 February 2025 to Question 31221 on Carbon Emissions: UK Trade with EU, if he will make a comparative estimate of the potential impact of the Carbon Border Adjustment Mechanism on the price of electricity in (a) Northern Ireland and (b) Great Britain after 1 January 2026.

I refer the Hon. Member to the answer given on 28 February 2025 to Question 31221

The EU’s Carbon Border Adjustment Mechanism (CBAM) is in an implementation period until January 2026 and applies to exports of electricity to the EU but not electricity for the UK market. The EU Commission has said that it intends to finalise the regulation via legislation over 2025. It remains difficult to conduct an accurate assessment of any potential impacts.

The UK will continue to engage closely with the EU as it finalises the CBAM and will continue to raise the need for clarity on the practical implementation of the CBAM for trade in electricity, given the challenges involved. Alongside this, to support business readiness for the EU CBAM, the Department for Business and Trade offers a comprehensive support package through business.gov.uk, signposting to relevant European Commission resources.