Source · Select Committees · Foreign Affairs Committee
Recommendation 26
26
Accepted
We ask the Government to provide clarity at the earliest opportunity about the state of...
Recommendation
We ask the Government to provide clarity at the earliest opportunity about the state of play of its engagement, if any, with the EU to agree an interim arrangement for British exports under the EU’s Carbon Border Adjustment Mechanism, while negotiations on a formal agreement to achieve linkage between the UK and EU Emissions Trading Systems are on-going. (Recommendation, Paragraph 81)
Government response summary AI-generated
The government states that it has delivered on its manifesto commitments to reset relations with European partners, that closer alignment can benefit UK businesses, and that they are already aligning with the Single Market in some areas. They also engage with stakeholders through various forums.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
The EU has been clear that the only route to an EU Carbon Border Adjustment Mechanism (CBAM) exemption is to fully link with the EU ETS and charge the same effective carbon price. Negotiations on an ETS linking agreement are underway and we aim to conclude these by the next UK-EU Summit, taking place this year. The EU has taken steps to mitigate the impact on the electricity sector by recognising the higher carbon price paid in the UK by fossil fuel generators of electricity, effectively exempting EU imports of UK electricity from the EU CBAM.
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