Fifth Report - Greening imports: a UK carbon border approach
Select Committee
Environmental Audit Committee
HC 737
4 April 2022
Recommendations
6 results
5
Deferred
We recommend that the Government commence work immediately on developing a comprehensive UK carbon border...
Recommendation
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 Summary
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.
13
Deferred
We recommend that the Government: a) Set out in its response to this report: b)...
Recommendation
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 Summary
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.
15
Deferred
Para 89
To navigate the design options available and ensure a policy response that is effective in...
Recommendation
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 Summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.
16
Deferred
Para 90
We recommend that the Government: a) clearly define its objectives for any carbon border approach...
Recommendation
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 Summary
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.
18
Deferred
Para 98
We recommend that the Government, at the design stage: a) Include a strategy to engage...
Recommendation
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 Summary
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.
20
Deferred
We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on...
Recommendation
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 Summary
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.
Conclusions (4) Observations and findings — click to expand
3
Conclusion
Deferred
Para 32
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 of the same products. A CBAM could address this, enabling …
Government Response Summary
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
Para 33
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 ensure the carbon border approach is successful in achieving its …
Government Response Summary
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.
7
Conclusion
Deferred
Para 53
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 understand how the UK’s carbon border approach might interact with …
Government Response Summary
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.
17
Conclusion
Deferred
Para 97
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 in inflation are contributing to stark rises in living costs; …
Government Response Summary
The government announced its intention to consult on a range of carbon leakage mitigation options, including on a UK CBAM, later this year.