Recommendations & Conclusions
10 items
3
Conclusion
Fifth Report - Greening imports: a UK c…
Deferred
While net zero policies address the UK’s territorial production emissions, 43% of the UK’s consumption emissions arise from imports. The UK’s principal carbon pricing mechanism, the ETS, applies to domestic production, but no carbon price is currently applied to imports of the same products. A CBAM could address this, enabling …
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While net zero policies address the UK’s territorial production emissions, 43% of the UK’s consumption emissions arise from imports. The UK’s principal carbon pricing mechanism, the ETS, applies to domestic production, but no carbon price is currently applied to imports of the same products. A CBAM could address this, enabling a carbon price to be applied to consumption emissions arising from both domestic production and imports of products covered by the ETS. In particular, CBAM has the potential to help build support for green policies in historic manufacturing areas where opportunities for a renaissance in low-carbon UK-based manufacturing are likely to be greatest.
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Government response AI summary
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
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4
Conclusion
Fifth Report - Greening imports: a UK c…
Deferred
Alongside CBAM, the UK’s carbon border approach needs to comprise a set of complementary policies, including product standards, to tackle consumption emissions beyond those covered by explicit carbon pricing, and support decarbonisation across the economy. Careful design is needed to ensure the carbon border approach is successful in achieving its …
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Alongside CBAM, the UK’s carbon border approach needs to comprise a set of complementary policies, including product standards, to tackle consumption emissions beyond those covered by explicit carbon pricing, and support decarbonisation across the economy. Careful design is needed to ensure the carbon border approach is successful in achieving its environmental objectives while mitigating the risks of adverse impacts.
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Government response AI summary
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
Read full response →
5
Recommendation
Fifth Report - Greening imports: a UK c…
Deferred
We recommend that the Government commence work immediately on developing a comprehensive UK carbon border approach, in order that this might be implemented during the 2020s. We recommend that this include a CBAM as part of a co-ordinated set of policies including product standards, alongside work to build consensus with …
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We recommend that the Government commence work immediately on developing a comprehensive UK carbon border approach, in order that this might be implemented during the 2020s. We recommend that this include a CBAM as part of a co-ordinated set of policies including product standards, alongside work to build consensus with trading partners, industry and consumers on the need for this policy response. The Chancellor of the Exchequer should provide an initial report to the House on progress on a CBAM not later than Budget 2023. We recommend that the Government build on its COP26 climate leadership internationally through pursuing long-term multilateral solutions alongside this ambitious UK approach. (Paragraph 34) Greening imports: a UK carbon border approach 47 Geopolitical considerations
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Government response AI summary
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
Read full response →
7
Conclusion
Fifth Report - Greening imports: a UK c…
Deferred
As the UK continues to negotiate its own trade agreements following exit from the European Union, there is an opportunity to align trade policy with the UK’s role as a leader in climate change action; further analysis is required to understand how the UK’s carbon border approach might interact with …
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As the UK continues to negotiate its own trade agreements following exit from the European Union, there is an opportunity to align trade policy with the UK’s role as a leader in climate change action; further analysis is required to understand how the UK’s carbon border approach might interact with these negotiations.
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Government response AI summary
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
Read full response →
13
Recommendation
Fifth Report - Greening imports: a UK c…
Deferred
We recommend that the Government: a) Set out in its response to this report: b) how it intends to work with stakeholders in the EU and UK to understand how the proposed EU CBAM, would affect the UK, including in Northern Ireland; and c) how it intends to ensure open …
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We recommend that the Government: a) Set out in its response to this report: b) how it intends to work with stakeholders in the EU and UK to understand how the proposed EU CBAM, would affect the UK, including in Northern Ireland; and c) how it intends to ensure open and transparent communication on progress on its actions to ensure businesses do not face any unreasonable barriers to trade, to provide greater clarity to UK industry; d) Engage directly with affected stakeholders in Northern Ireland and the EU during the design stage of any UK carbon border approach, and e) Before the end of 2022, launch a consultation on measures to link the UK and EU emissions trading schemes. (Paragraph 72) Further design considerations
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Government response AI summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including a UK CBAM, later this year, but does not commit to any course of action.
Read full response →
15
Recommendation
Fifth Report - Greening imports: a UK c…
Deferred
To navigate the design options available and ensure a policy response that is effective in achieving its objectives, it is important that the Government articulate from the outset the objectives of the UK’s carbon border approach, so that the design is led by these, and understand the potential impacts to …
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To navigate the design options available and ensure a policy response that is effective in achieving its objectives, it is important that the Government articulate from the outset the objectives of the UK’s carbon border approach, so that the design is led by these, and understand the potential impacts to industries across all sectors of the economy and at all stages of the value chain, to ensure effective policy responses and implementation. This should include assessment of the impact on SMEs.
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Government response AI summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.
Read full response →
16
Recommendation
Fifth Report - Greening imports: a UK c…
Deferred
We recommend that the Government: a) clearly define its objectives for any carbon border approach at the outset, and ensure the choice of policy options and design consideration at each stage is led by these objectives. These should encompass the need to drive decarbonisation across Greening imports: a UK carbon …
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We recommend that the Government: a) clearly define its objectives for any carbon border approach at the outset, and ensure the choice of policy options and design consideration at each stage is led by these objectives. These should encompass the need to drive decarbonisation across Greening imports: a UK carbon border approach 49 the economy to address climate change, whilst ensuring low- and middle-income countries, vulnerable households and wider environmental goals, such as nature, are not adversely impacted; b) During the design stage of the carbon border approach, engage with industrial stakeholders and conduct impact analysis across sectors, so as to understand the most effective policy instruments and implementation timescales for each sector and ensure industries at all stages of the value chain, including end users, are involved in the design of the carbon border approach. This engagement should be conducted through specific forums which bring stakeholders, including industry, academics, the environmental community and consumer groups, together alongside representatives from all relevant Government departments. c) Carry out a specific assessment of the impact on SMEs during the design phase of the carbon border approach, and set up a forum for engagement with SMEs. The UK’s carbon border approach should also include a plan for communicating changes with SMEs and should ensure that ease of administration is built into design.
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Government response AI summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year to seek a wide range of views from stakeholders on the UK’s future carbon leakage mitigation policy.
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17
Conclusion
Fifth Report - Greening imports: a UK c…
Deferred
Pricing the carbon element, so low-carbon products become less expensive than high-carbon ones, is a powerful lever to reduce consumption emissions, to support the development of low-carbon products and increase access to such products. Currently, high energy prices and rises in inflation are contributing to stark rises in living costs; …
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Pricing the carbon element, so low-carbon products become less expensive than high-carbon ones, is a powerful lever to reduce consumption emissions, to support the development of low-carbon products and increase access to such products. Currently, high energy prices and rises in inflation are contributing to stark rises in living costs; it is important that the design of any carbon border approach include a strategy for public engagement to build consensus around the importance of the policy response as a measure to combat climate change, alongside assessments to understand any potential impact on consumers, including vulnerable and low- income households, to ensure any supporting policies which might be required can be incorporated into the approach.
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Government response AI summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.
Read full response →
18
Recommendation
Fifth Report - Greening imports: a UK c…
Deferred
We recommend that the Government, at the design stage: a) Include a strategy to engage with the public in the design of the carbon border approach to develop and maintain public support and keep the public informed of the changes that would occur, the rationale and methodology supporting the changes, …
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We recommend that the Government, at the design stage: a) Include a strategy to engage with the public in the design of the carbon border approach to develop and maintain public support and keep the public informed of the changes that would occur, the rationale and methodology supporting the changes, and their impact and timescales; and b) Conduct analysis to understand any potential impact on consumers, including vulnerable and low-income households, and ensure the carbon border approach includes any measures needed to address this.
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Government response AI summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including a UK CBAM, later this year, and is committed to communicating in an open and transparent way as it develops its carbon leakage mitigation policy options but does not …
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20
Recommendation
Fifth Report - Greening imports: a UK c…
Deferred
We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on Climate Action, that the UK’s carbon border approach is aligned with existing environmental, trade, development and fiscal policy, through both its design and implementation stages. This should include setting out how the carbon border approach …
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We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on Climate Action, that the UK’s carbon border approach is aligned with existing environmental, trade, development and fiscal policy, through both its design and implementation stages. This should include setting out how the carbon border approach would interact with the tax and customs arrangements in Freeports; and b) During the design stage, establish methods for monitoring and understanding the impacts of the carbon border approach once implemented. This should include mechanisms for periodic consultation with stakeholders, including those in industry, academics, the environmental community and consumer groups. We expect any statement of policy on the UK’s carbon border approach to be presented to Parliament. (Paragraph 107) Greening imports: a UK carbon border approach 51
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Government response AI summary
The government agrees with the importance of aligning its approach to carbon leakage with wider policy and will continue to engage with Cabinet Committees and work across Government and announced its intention to consult on a range of carbon leakage mitigation options, including on a …
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