Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of restricting the UK CBAM to primary materials on imports of finished steel goods.

For the introduction of the CBAM in 2027, the Government has focused on three factors to determine its scope: firstly, those sectors within scope of the UK Emissions Trading Scheme; secondly, those most at risk of carbon leakage; and thirdly, where effective implementation is feasible. As a result, for now we have focused on including the simplest (upstream) goods within the iron and steel, aluminium, cement, fertiliser and hydrogen sectors and the Government’s priority is to deliver an effective CBAM on these sectors for 1 January 2027.

The government will keep the list of products in scope of CBAM under review from 2027 onwards, to reflect the evolving carbon leakage context.