Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the likely impact on Northern Ireland and its participation in the Single Electricity Market of the introduction of the European Union's carbon border adjustment mechanism on 1 January 2026; and what discussions they have had with the European Union about an interim arrangement for Northern Ireland.

The EU’s Carbon Border Adjustment Mechanism (CBAM) will enter its definitive regime from January 2026 applies to imports of electricity and certain goods into the EU.

The EU CBAM does not apply in Northern Ireland. Northern Ireland-based power generators are already part of the EU Emissions Trading Scheme in order to maintain the arrangements underpinning the Single Electricity Market. Electricity sent to Northern Ireland from Great Britain is not affected by the EU CBAM.

If businesses are moving electricity to Ireland or elsewhere in the EU, they may need to provide information to their EU-based importer to help them meet their requirements under the EU CBAM. The UK will continue to engage closely with the EU as it finalises the CBAM.

UK businesses should stay informed about developments regarding the EU CBAM, the Department for Business and Trade offers a comprehensive support package through business.gov.uk.