Source · Select Committees · Environmental Audit Committee
Recommendation 20
20
We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on...
Recommendation
We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on Climate Action, that the UK’s carbon border approach is aligned with existing environmental, trade, development and fiscal policy, through both its design and implementation stages. This should include setting out how the carbon border approach would interact with the tax and customs arrangements in Freeports; and b) During the design stage, establish methods for monitoring and understanding the impacts of the carbon border approach once implemented. This should include mechanisms for periodic consultation with stakeholders, including those in industry, academics, the environmental community and consumer groups. We expect any statement of policy on the UK’s carbon border approach to be presented to Parliament. (Paragraph 107) Greening imports: a UK carbon border approach 51
Government Response
Acknowledged
HM Government
Acknowledged
The Government agrees with the importance of aligning our approach to carbon leakage with our wider environmental, trade, development, and fiscal policy. We will continue to engage with all the appropriate Cabinet Committees as we consult on a possible UK CBAM, and other possible mitigation measures. We will also continue to work across Government to align any future approach, if implemented, with existing policies, including tax and customs arrangements in Freeports. 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.