To ask His Majesty's Government what assessment they have made of the compatibility of the EU Carbon Border Adjustment Mechanism with the island of Ireland's Single Electricity Market.
Answered on
17 February 2025
The UK shares the EU’s concerns about the risk of carbon leakage and recognises the EU’s right to take action to address it. The Government plans to apply the UK Carbon Border Adjustment Mechanism (CBAM) across the whole UK, including in NI. The UK will continue to work with international partners, including the EU, to ensure our approach is implemented in a way that works for businesses.
The EU CBAM could only apply in Northern Ireland with the agreement of the UK and in line with the democratic safeguards of the Windsor Framework.
For goods moving from Northern Ireland into the EU, guidance is a matter for the European Commission and EU Member States. The UK have raised with the EU Commission the need for clarity on the practical implementation of the EU CBAM for trade in electricity, given the challenges involved.
The EU Commission website is the most up to date source of information and guidance.