Carbon Emissions: Taxation

Question

As we transition to net zero, the Government recognises the importance of addressing the risk of carbon leakage. As set out in the final report of the Net Zero Review, a range of approaches could potentially help address this issue, of which Carbon Border Adjustment Mechanisms are one. The best way of addressing carbon leakage is ensuring there is consistent carbon pricing internationally. However, several issues need to be resolved before any international solution can be agreed. Therefore, the Government is continuing to work on a range of approaches for dealing with carbon leakage, both domestically and with international partners.