Recommendation 17

We asked about the feasibility of a tax based on carbon embedded in imports (a carbon border adjustment tax) to reduce the risk of pushing emissions abroad. The Treasury told us that it was considering this as part of its net zero review. It explained that it needed to further investigate the proposal, particularly whether it would be effective in maintaining UK jobs and facilitating decarbonisation in the Global South, how it could be implemented and whether it would comply with World Trade Organisation rules. It explained that the European Commission was considering a carbon border adjustment tax and it expected to learn from this about how the UK could tackle the issue of imported carbon in future.31 30 Qq 20-21 31 Qq 21-22 14 Achieving Net Zero 2 Wider engagement Engaging with the general public