Oral QuestionTreasury

What steps she plans to take help protect the steel industry from high emission steel being diverted away from the EU to the UK following confirmation of the UK Carbon Border Adjustment Mechanism for 2027.

Tabled: 15 January 2025Answered: 21 January 2025

Asked by

Antonia Bance

LabourTipton and Wednesbury

Answering Minister

the Chancellor of the Exchequer

Answer from Hansard

The Exchequer Secretary to the Treasury (James Murray)

The UK carbon border adjustment mechanism will be introduced in 2027. It will ensure that imports face a carbon price that is comparable with domestic products, giving UK industry the confidence to invest without its decarbonisation efforts being undermined. UK steel producers will continue to benefit from high levels of free allowances in the UK emissions trading system until at least the end of 2026, protecting them against carbon leakage via high-emission imports.