16 June 2022
Aldous questions Government on net zero carbon policies and protecting UK jobs

Peter Aldous calls on the Government to implement a carbon border adjustment mechanism, in co-operation with the EU and US, to ensure that British businesses are not undercut and jobs moved to countries with less strict climate change policies, so called ‘carbon leakage’.

Peter Aldous (Waveney) (Con)

T2. As the UK decarbonises our economy to deliver net zero, it is vital that a carbon border adjustment mechanism is implemented to prevent carbon leakage to other parts of the world, to ensure that our own domestic producers are not undercut and to create jobs. Will my right hon. Friend provide an update on the Government’s work to deliver the mechanism, particularly with regard to international co-operation with the EU and the US? (900512)

The Minister for Trade Policy (Penny Mordaunt)

I thank my hon. Friend for raising this important issue. We recognise that the risk of carbon leakage is a very real one, and on 16 May we announced our intention to consult on a range of possible mitigation options, including product standards and a carbon border adjustment mechanism. We are working with our international partners and we are clear that any policies we consider will have to fit in with other UK priorities, which include the cost of living, economic growth, and our commitment to the World Trade Organisation, free and fair trade and the needs of developing nations.