Source · Select Committees · Environmental Audit Committee
Recommendation 9
9
Paragraph: 63
In our view, the Government’s commitment to work with stakeholders to understand the potential impact...
Conclusion
In our view, the Government’s commitment to work with stakeholders to understand the potential impact of an EU CBAM on UK industry and ensure no unreasonable barriers to trade is welcome. Given the potential UK impacts, clarity is needed on how the Government intends to do this, and urgently, given that the proposed EU CBAM is intended to be fully in effect from the mid-2020s.
Paragraph Reference:
63
Government Response
Acknowledged
HM Government
Acknowledged
We are actively engaging with the EU on their CBAM proposals through formal channels, such as our UK Mission to Brussels, and informal channels, as we do on other elements of the international tax and trade agendas. The UK has ambitious carbon pricing through our emissions trading scheme and Carbon Price Support mechanism. We expect the EU CBAM to take account of this in its implementation. We will continue to engage with stakeholders and monitor developments closely so we can build a full understanding of the implication of the EU CBAM on the UK’s trading relationship with the EU, including with respect to Northern Ireland.