Source · Select Committees · Business and Trade Committee
Recommendation 12
12
Acknowledged
Require all batteries on the UK market to include a comprehensive battery passport.
Recommendation
A battery supply chain in the UK would enable businesses based in this country to manufacture batteries sustainably and ethically. This offers the UK a competitive advantage over other markets, especially as consumers demand higher environmental, social and governance standards. The UK’s access to low-carbon sources of electricity means that batteries produced in the UK will be produced more sustainably than those in China and many European countries. The Government should empower UK consumers by requiring batteries available on the UK market to come with a battery passport containing information about how sustainably and ethically those batteries were produced. (Paragraph 53) Encouraging investment into the battery supply chain in the UK
Government Response Summary
The government acknowledges the opportunity for pro-growth regulation and access to battery data via certification schemes as key enablers for a circular economy. While not directly committing to requiring a 'battery passport,' it will implement a UK Carbon Border Adjustment Mechanism (CBAM) by 2027 and Defra will consider broader regulation for the battery ecosystem.
Government Response
Acknowledged
HM Government
Acknowledged
A) The UK Battery Strategy notes that technology will have a key role in facilitating green trade. For example, digital trade will be important, as data on a battery pack’s historical performance and cycles will remove barriers to their efficient repair, reuse, and repurposing by re-manufacturing businesses, reducing environmental damage. The UK will be a world leader in sustainable battery design and manufacture, underpinned by a thriving battery innovation ecosystem. B) The UK Battery Strategy also notes the opportunity for pro-growth regulation to support the circular economy. Key enablers include: • Designing for reuse, recycling, and repurposing. • Access to first life battery data for repurposing and reuse, including through certification schemes. • Liability and ownership transfer, to enable repurposing and second life, and to avoid “do not fix” default. • Certification and re-certification for second life and repurposed batteries. C) To facilitate green trade, the UK is working with international partners to align environmental standards and remove barriers to trade. For example, the UK advocates for collective agreement at the Trade and Environmental Sustainability Structured Discussions (TESSD) at the WTO while also working through bilateral and plurilateral channels to lower barriers. D) The government has committed to two consultations in 2024: • The Department for Environment, Food and Rural Affairs (Defra), in collaboration with the Devolved Administrations, is committed to publishing a consultation and Call for Evidence as early as possible in 2024, focussing on increasing collection rates for batteries and encouraging best practice in end-of- life management of all battery types and chemistries. Defra will work with the whole supply chain to consider regulation for the entire eco-system. • The government will implement a UK Carbon Border Adjustment Mechanism (CBAM) by 2027. The liability applied by the CBAM will depend on the greenhouse gas emissions intensity of the imported good and the gap between the carbon price applied in the country of origin (if any) and the carbon price that would have been applied had the good been produced in the UK. CBAM liability will lie directly with the importer of imported products within scope of the UK CBAM on the basis of emissions embodied in imported goods. This system will not involve the purchase or trading of emissions certificates. Further details on the design and delivery of a UK CBAM will be subject to consultation in 2024. Encouraging investment into the battery supply chain in the UK