Carbon border adjustment mechanisms
Environmental Audit Committee
Closed
Inquiry
The Environmental Audit Committee is launching an inquiry into carbon border adjustment mechanisms (CBAMs). The inquiry is looking at the role a CBAM could play in addressing potential carbon leakage and meeting the UK’s environmental objectives. The inquiry is also considering the wider impacts, risks and opportunities which might arise …
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8
Recommendations
12
Conclusions
1
Report
3
Oral sessions
3
Events
Activity timeline 8 events
21 Jun
2022
2022
4 Apr
2022
2022
Report published
23 Feb
2022
2022
Oral evidence
23 Feb
2022
2022
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
8 Dec
2021
2021
Oral evidence
8 Dec
2021
2021
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
24 Nov
2021
2021
Oral evidence
24 Nov
2021
2021
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
Oral evidence sessions 3 sessions
23 Feb 2022
View on parliament.uk
Mike Williams · HM Treasury
Rt Hon Lucy Frazer QC · HM Treasury
8 Dec 2021
View on parliament.uk
Dr Richard Leese · Energy Intensive Users Group
Dr Scott Steedman · British Standards Institution
Fergus McReynolds · Make UK
Mr Pawel Kisielewski · CCm Technologies
Paul Dawson · RWE Supply & Trading GmbH
Richard Warren · UK Steel
Rich Woolley · Chemical Industries Association
24 Nov 2021
View on parliament.uk
Domien Vangenechten · Third Generation Environmentalism (E3G)
Dr Sanna Markkanen · Cambridge Institute for Sustainability Leadership
Hannah Dillon · Zero Carbon Campaign
Michael Mehling · University of Strathclyde School of Law
Mike Thompson · Committee on Climate Change
Misato Sato · Grantham Research Institute on Climate Change and the Environment, London School of Economics
Sir Dieter Helm · University of Oxford
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Fifth Report - Greening imports: a UK carbon border approach | HC 737 | 4 Apr 2022 | 20 | Responded |
Recommendations & Conclusions
20 results
1
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
Effective carbon pricing is crucial to decarbonisation, but cannot be achieved without effective anti-carbon leakage...
Effective carbon pricing is crucial to decarbonisation, but cannot be achieved without effective anti-carbon leakage policies in place. The Government’s current approach to addressing the risks of carbon leakage, including free allocation of Emissions Trading Scheme (ETS) allowances, is insufficient …
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Government Response
The government agrees that multilateral solutions are needed and is working internationally to promote carbon pricing and build a common understanding of carbon leakage risks, and announced its intention to consult on a range of carbon leakage mitigation options.
2
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
Multilateral and global approaches to carbon pricing represent the most appropriate way to support global...
Multilateral and global approaches to carbon pricing represent the most appropriate way to support global decarbonisation. Since the process to negotiate and agree these is lengthy, they cannot provide the urgent action necessary in the short term. Pursuing a unilateral …
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Government Response
The government agrees that multilateral solutions are needed and is working internationally to promote carbon pricing and build a common understanding of carbon leakage risks, and announced its intention to consult on a range of carbon leakage mitigation options.
3
Conclusion
Deferred
Fifth Report - Greening imports: a…
While net zero policies address the UK’s territorial production emissions, 43% of the UK’s consumption...
While net zero policies address the UK’s territorial production emissions, 43% of the UK’s consumption emissions arise from imports. The UK’s principal carbon pricing mechanism, the ETS, applies to domestic production, but no carbon price is currently applied to imports …
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Government Response
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
4
Conclusion
Deferred
Fifth Report - Greening imports: a…
Alongside CBAM, the UK’s carbon border approach needs to comprise a set of complementary policies,...
Alongside CBAM, the UK’s carbon border approach needs to comprise a set of complementary policies, including product standards, to tackle consumption emissions beyond those covered by explicit carbon pricing, and support decarbonisation across the economy. Careful design is needed to …
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Government Response
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
5
Recommendation
Deferred
Fifth Report - Greening imports: a…
We recommend that the Government commence work immediately on developing a comprehensive UK carbon border...
We recommend that the Government commence work immediately on developing a comprehensive UK carbon border approach, in order that this might be implemented during the 2020s. We recommend that this include a CBAM as part of a co-ordinated set of …
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Government Response
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
6
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
The UK is an open, trading economy, and trade can be a powerful lever to...
The UK is an open, trading economy, and trade can be a powerful lever to drive environmental outcomes. Careful design, alongside inclusive engagement with trading partners, is needed to ensure that any CBAM and wider carbon border approach are aligned …
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Government Response
The government agrees that multilateral solutions are needed and is working internationally to promote carbon pricing and build a common understanding of carbon leakage risks, and announced its intention to consult on a range of carbon leakage mitigation options.
7
Conclusion
Deferred
Fifth Report - Greening imports: a…
As the UK continues to negotiate its own trade agreements following exit from the European...
As the UK continues to negotiate its own trade agreements following exit from the European Union, there is an opportunity to align trade policy with the UK’s role as a leader in climate change action; further analysis is required to …
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Government Response
The government is working internationally to promote carbon pricing and announced its intention to consult on carbon leakage mitigation options, including a UK CBAM, but does not commit to any course of action.
8
Recommendation
Acknowledged
Fifth Report - Greening imports: a…
Our recommendations to Government on the design of the carbon border approach are as follows:...
Our recommendations to Government on the design of the carbon border approach are as follows: a) to ensure, from the outset, that the carbon border approach is designed to adhere to the principles of common but differentiated responsibilities and respective …
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Government Response
The government acknowledges the importance of balancing priorities including WTO rules, free trade, and the needs of developing countries. They will continue working with international partners in the G20, WTO, and OECD to advance global climate goals and are supporting developing countries' climate ambitions with financial contributions.
9
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
In our view, the Government’s commitment to work with stakeholders to understand the potential impact...
In our view, the Government’s commitment to work with stakeholders to understand the potential impact of an EU CBAM on UK industry and ensure no unreasonable barriers to trade is welcome. Given the potential UK impacts, clarity is needed on …
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Government Response
The government is actively engaging with the EU on their CBAM proposals through formal and informal channels and expects the EU CBAM to take into account the UK's carbon pricing.
10
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
It is at present unclear how the proposed EU CBAM might impact the UK, particularly...
It is at present unclear how the proposed EU CBAM might impact the UK, particularly Northern Ireland, where electricity generators are currently under the scope of the EU’s ETS. We understand that this is a dynamic discussion which depends on …
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Government Response
The government is actively engaging with the EU on their CBAM proposals and will continue to engage with stakeholders and monitor developments closely to build a full understanding of the implication of the EU CBAM on the UK’s trading relationship with the EU, including with respect to Northern Ireland.
11
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
The Government has committed to ensuring businesses do not face any unreasonable barriers to trade;...
The Government has committed to ensuring businesses do not face any unreasonable barriers to trade; further detail would be welcome on how it plans to work with stakeholders in the EU and UK to achieve this. Given that electricity generators …
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Government Response
The government is actively engaging with the EU on their CBAM proposals through formal and informal channels and expects the EU CBAM to take into account the UK's carbon pricing.
12
Recommendation
Acknowledged
Fifth Report - Greening imports: a…
The UK and EU have agreed to consider linking the UK and EU ETS systems,...
The UK and EU have agreed to consider linking the UK and EU ETS systems, which would exempt UK producers from the EU’s CBAM (and vice versa), simplifying administrative processes for UK-EU trade; as linking can be a lengthy process, …
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Government Response
The government states it is open to linking the UK ETS internationally in principle and is considering a range of options, and that cooperation and dialogue on carbon pricing will continue to be important.
13
Recommendation
Deferred
Fifth Report - Greening imports: a…
We recommend that the Government: a) Set out in its response to this report: b)...
We recommend that the Government: a) Set out in its response to this report: b) how it intends to work with stakeholders in the EU and UK to understand how the proposed EU CBAM, would affect the UK, including in …
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Government Response
The government announced its intention to consult on a range of carbon leakage mitigation options, including a UK CBAM, later this year, but does not commit to any course of action.
14
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
As the report of the Treasury’s Net Zero Review notes, there can be no one-size-fits-...
As the report of the Treasury’s Net Zero Review notes, there can be no one-size-fits- all mechanism to address carbon leakage risks. The UK’s carbon border approach needs to comprise a set of complementary policies, designed to drive industrial decarbonisation …
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Government Response
The government agrees that multilateral solutions are needed and is working internationally to promote carbon pricing and build a common understanding of carbon leakage risks, and announced its intention to consult on a range of carbon leakage mitigation options.
15
Recommendation
Deferred
Fifth Report - Greening imports: a…
To navigate the design options available and ensure a policy response that is effective in...
To navigate the design options available and ensure a policy response that is effective in achieving its objectives, it is important that the Government articulate from the outset the objectives of the UK’s carbon border approach, so that the design …
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Government Response
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.
16
Recommendation
Deferred
Fifth Report - Greening imports: a…
We recommend that the Government: a) clearly define its objectives for any carbon border approach...
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 …
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Government Response
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year to seek a wide range of views from stakeholders on the UK’s future carbon leakage mitigation policy.
17
Conclusion
Deferred
Fifth Report - Greening imports: a…
Pricing the carbon element, so low-carbon products become less expensive than high-carbon ones, is a...
Pricing the carbon element, so low-carbon products become less expensive than high-carbon ones, is a powerful lever to reduce consumption emissions, to support the development of low-carbon products and increase access to such products. Currently, high energy prices and rises …
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Government Response
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.
18
Recommendation
Deferred
Fifth Report - Greening imports: a…
We recommend that the Government, at the design stage: a) Include a strategy to engage...
We recommend that the Government, at the design stage: a) Include a strategy to engage with the public in the design of the carbon border approach to develop and maintain public support and keep the public informed of the changes …
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Government Response
The government announced its intention to consult on a range of carbon leakage mitigation options, including a UK CBAM, later this year, and is committed to communicating in an open and transparent way as it develops its carbon leakage mitigation policy options but does not commit to any course of action.
19
Conclusion
Acknowledged
Fifth Report - Greening imports: a…
The UK’s carbon border approach needs to be aligned with the Government’s wider environmental policies,...
The UK’s carbon border approach needs to be aligned with the Government’s wider environmental policies, and integrated into trade, development and fiscal policy. The context for carbon border measures is not fixed, and CBAM in particular represents a new policy …
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Government Response
The government agrees with the importance of aligning its approach to carbon leakage with its wider environmental, trade, development, and fiscal policy and will continue to engage with all the appropriate Cabinet Committees as it consults on a possible UK CBAM.
20
Recommendation
Deferred
Fifth Report - Greening imports: a…
We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on...
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. …
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Government Response
The government agrees with the importance of aligning its approach to carbon leakage with wider policy and will continue to engage with Cabinet Committees and work across Government and announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.
Government Response AI assessment · 20 of 8 classified
Acknowledged
10
Deferred
10
Total
8 recs + 12 conclusions