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 the annual compliance and administrative costs for each of the sectors affected.

The Government has sought to keep administrative burdens to a minimum whilst still achieving its policy objectives. The minimum registration threshold of £50,000 of CBAM goods over a 12-month rolling period removes over 80% of otherwise registrable businesses from the scope of CBAM, whilst retaining over 99% of imported emissions. Over 70% of those removed from the CBAM altogether by this threshold are micro, small and medium sized businesses.

The Government has set out the expected impacts of the Carbon Border Adjustment Mechanism (CBAM) in the Tax Information and Impact note.^[1]

^[1] Carbon Border Adjustment Mechanism - GOV.UK