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Carbon Emissions: Taxation

Question for Treasury

UIN 7970, tabled on 24 May 2022

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of introducing a UK carbon border adjustment mechanism.

Answered on

30 May 2022

As the UK transitions to Net Zero, the Government recognises the importance of addressing the risk of carbon leakage. The best solution would be for all countries to move together in the pricing and regulation of carbon emissions. However, international solutions will take time to develop, and so the Government is considering options for domestic action in parallel.

As I set out in a Written Ministerial Statement on 16 May 2022, later in the year the Government intends to consult on a range of carbon leakage mitigation options, including on whether measures such as product standards and a carbon border adjustment mechanism (CBAM) could be appropriate tools in the UK’s policy mix.

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