To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential merits of introducing a carbon border levy.
28 January 2021
As we deliver our 10 point plan, we recognise it is important to ensure that our ambitious policy interventions do not lead to increased emissions elsewhere. We are working across government to better understand this potential issue, known as carbon leakage, including the impact it could have on the UK.
As set out in the interim report of the Net Zero Review published in December, a range of approaches could potentially help to address carbon leakage. The EU’s proposed carbon border levy is one policy option, which we are monitoring closely.
The UK will continue working closely with all our international partners to address climate change across the economy, using our G7 and COP26 Presidencies to ensure that we build back better following the coronavirus pandemic.