Question to the HM Treasury:

To ask His Majesty's Government, further to the publication of draft Carbon Border Adjustment Mechanism default values, what estimate they have made of their total expected revenues for each of the sectors affected in each of the first three years.

The Carbon Border Adjustment Mechanism (CBAM) is a new environmental tax which will ensure that highly traded, carbon-intensive goods imported into the UK face a carbon price comparable to that paid by UK manufacturers were the good produced in the UK. Its purpose is therefore primarily environmental and is not designed to maximise revenue.

The OBR forecasts in the Economic and Fiscal Outlook that CBAM will raise £29M in 2026-27, £118M in 2027-28, £126M for 2028-29 and £146M in 2029-30. The OBR do not provide a sectoral breakdown for these revenues.