Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to ensure that Environmental, Social and Governance frameworks prevent the displacement of emissions to unregulated regions.
The Government is working to reduce the risk of emissions displacement through adopting and supporting the use of internationally recognised sustainability standards.
The Government is also taking action to address carbon leakage, including by introducing a carbon border adjustment mechanism from January 2027. This will ensure highly traded, carbon intensive products from jurisdictions outside the UK face a comparable carbon price to that paid by UK manufacturers, so that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.