Source · Select Committees · Environmental Audit Committee
Recommendation 10
10
Paragraph: 69
It is at present unclear how the proposed EU CBAM might impact the UK, particularly...
Conclusion
It is at present unclear how the proposed EU CBAM might impact the UK, particularly Northern Ireland, where electricity generators are currently under the scope of the EU’s ETS. We understand that this is a dynamic discussion which depends on wider continuing negotiation between the UK and EU, as well as developments in the proposed EU CBAM. It is nevertheless important that UK stakeholders are kept informed.
Paragraph Reference:
69
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.