Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the impact of the impending European Union carbon border adjustment mechanism on clean energy investment on the island of Ireland.

The EU’s Carbon Border Adjustment Mechanism (CBAM) is in an implementation period 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 ahead of the CBAM entering its definitive period.

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.