Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what is the estimated impact of the proposed Carbon Border Adjustment Mechanism on the competitiveness of UK steel exports.

From 1 January 2027, the UK Carbon Border Adjustment Mechanism (CBAM) will apply to specific goods imported from the aluminium, cement, fertiliser, hydrogen, and iron & steel sectors.

The UK CBAM is designed to address the risk of carbon leakage and to ensure that CBAM goods which are imported from overseas face a comparable carbon price to what is paid by manufacturers producing the same goods in the UK.

The UK CBAM does not apply to UK exports. Therefore, the UK CBAM is not expected to have an impact on the competitiveness of UK steel exports.