Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the introduction of the Carbon Border Adjustment Mechanism on the functioning of the UK Internal Market for (a) the period 1 January 2026 - 31 December 2026 and (b) the period 1 January 2027 onwards, and what steps he taken to prepare businesses for the legislation.

The EU Carbon Border Adjustment Mechanism (CBAM) will apply in its definitive regime from January 2026 but will not apply in Northern Ireland. It could only apply with UK agreement and under Windsor Framework democratic safeguards. From 2027, UK CBAM will apply across the entire UK, including Northern Ireland, ensuring consistent requirements for businesses.

To support business readiness for EU CBAM, the Department for Business and Trade has compiled a comprehensive support package, including Export Support Service (ESS), webinars, and an upcoming explainer on business.gov.uk, signposting to relevant European Commission resources. This package is informed by extensive engagement with businesses.