Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the introduction of the Carbon Border Adjustment Mechanism mandated by Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 on trade between Great Britain and Northern Ireland from 1 January 2026 for the period (a) between 1 January 2026 and 31 December 2026 and (b) from from 1 January 2027 onwards.

This question was answered on 13th November 2025
From January 2027, the UK Carbon Border Adjustment Mechanism (UK CBAM) will apply across the whole of the UK, including Northern Ireland. The UK Government included an assessment of business impacts in the 2024 consultation 'Introduction of a UK carbon border adjustment mechanism from 2027'.

The EU Carbon Border Adjustment Mechanism (EU CBAM) will apply in its definitive regime from January 2026 and does not apply in Northern Ireland.

To support business readiness for the EU CBAM, the Department for Business and Trade offers a comprehensive support package, including the Export Support Service (ESS), webinars, and an upcoming digital explainer on business.gov.uk, signposting to relevant European Commission resources.