PARLIAMENTARY WRITTEN QUESTION
(12 December 2024)

The aim of the UK CBAM is to ensure imported products are subject to a carbon price comparable to that incurred by UK production, mitigating the risk of carbon leakage. By its very nature, a CBAM can only apply to imported goods, so it cannot mitigate any risk of carbon leakage in export markets.

The government will continue to consider whether there is a role for existing or future carbon leakage policies to address the risk associated with exports. Any policies applied to exported products would need to be compliant with the UK’s WTO obligations and our commitment to free and open trade.

A more detailed assessment of CBAM impacts on the economy and carbon leakage will be provided before legislation is introduced.