Source · Select Committees · Environmental Audit Committee
Recommendation 16
16
Paragraph: 90
We recommend that the Government: a) clearly define its objectives for any carbon border approach...
Recommendation
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.
Paragraph Reference:
90
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.