Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the Carbon Border Adjustment Mechanism on the energy-related costs of UK exporters.

Charges under the EU Carbon Border Adjustment Mechanism (CBAM) for relevant goods entering the EU Single Market have applied since January 2026. UK businesses may face costs supporting EU importers to comply with the EU CBAM. The obligation to purchase EU CBAM certificates lies with EU importers. Costs on UK exporters are therefore uncertain and dependent on commercial and policy factors.

We are engaging with the EU on Emission Trading Scheme linking to facilitate a mutual UK-EU CBAM exemption.