Select committee: Environmental Audit Committee
Recommendation 16
Fifth Report - Greening imports: a UK carbon border approach
Published 4 Apr 2022
Paragraph 90
Environmental Audit Committee Carbon border adjustment mechanisms All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
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.
From: Environmental Audit Committee, Fifth Report - Greening imports: a UK carbon border approach (HC 737), paragraph 90, 4 April 2022
Government response
The government responded to the whole report on 21 June 2022 (deadline 4 June 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government says it agrees that multilateral solutions are needed and that "the risk of carbon leakage is real", and intends to consult later in 2022 on carbon leakage mitigation options, including whether a CBAM "could be appropriate", without committing to any course of action.
- The government agrees that "we need multilateral solutions" and says it is "committed to building on our COP26 climate leadership" by working with international partners towards a common global approach to carbon pricing and leakage.
- It intends to consult "later in the year" on carbon leakage mitigation options, including "whether measures such as product standards and a CBAM could be appropriate tools". It states the announcement "does not commit the Government to any course of action down the line".
- On alignment with wider policy, it "agrees with the importance" of aligning its approach with environmental, trade, development and fiscal policy, and will continue to engage the relevant Cabinet Committees.
- On linking the UK and EU emissions trading schemes, the government is "open to linking the UK ETS internationally in principle" and "is considering a range of options", with "no decision on any preferred linking partners" made.