Source · Select Committees · Environmental Audit Committee
Recommendation 15
15
Paragraph: 89
To navigate the design options available and ensure a policy response that is effective in...
Conclusion
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.
Paragraph Reference:
89
Government Response
Acknowledged
HM Government
Acknowledged
As noted above, we have announced our intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year. This announcement does not commit the Government to any course of action down the line, but will enable us to better understand and develop our options. Our intention is to seek a wide range of views from stakeholders on the UK’s future carbon leakage mitigation policy. The Government is committed to communicating in an open and transparent way as we develop our carbon leakage mitigation policy options. It is essential that, if implemented, these policies are designed with the needs of stakeholders, the interests of consumers, and the wider impact (including on trade) in mind. We are aware that if implemented, differing approaches may be required for certain sectors, types of firms, and geographical locations, and we will continue to work with all relevant stakeholders to understand these nuances. We will also carefully assess the potential impact of any carbon leakage mitigation measures on business and consumer prices and will use those assessments to inform any future decisions on the right policy response.