Carbon border adjustment mechanisms

Environmental Audit Committee Closed Inquiry
Opened: 24 Sep 2021 Closed: 21 Jun 2023 Parliament page
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 … Read more
8 Recommendations
12 Conclusions
1 Report
3 Oral sessions
3 Events
Activity timeline 8 events
21 Jun
2022
Report published
4 Apr
2022
Report published
23 Feb
2022
Oral evidence
23 Feb
2022
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
8 Dec
2021
Oral evidence
8 Dec
2021
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
24 Nov
2021
Oral evidence
24 Nov
2021
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
Oral evidence sessions 3 sessions
23 Feb 2022
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Mike Williams · HM Treasury Rt Hon Lucy Frazer QC · HM Treasury
8 Dec 2021
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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
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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
Title HC No. Published Items Response
Fifth Report - Greening imports: a UK carbon border approach HC 737 4 Apr 2022 20 Responded
Recommendations & Conclusions
10 results
Clear
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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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, … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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Government Response AI assessment · 20 of 8 classified
Acknowledged 10
Deferred 10
Total 8 recs + 12 conclusions