CBAM report from Commons Library

Date: 12th March 2023

The House of Commons Library has published a briefing report on carbon border adjustment mechanisms, (CBAM), which are becoming increasingly contentious in international trade.   The report notes that there challenges in collecting, reporting and verifying carbon emissions information needed for calculating appropriate carbon tariffs.

The UK government is consulting this year on a proposed UK CBAM, which is likely to differ to some degree from the EU CBAM – although many industries are calling for alignment.  It is also set to be introduced later than the EU’s.

Meanwhile, the EU’s CBAM, the world’s first such measure and due for full implementation in 2026, is said to have had serious teething problems and has been criticised outside Europe as unreasonable and protectionist.  Within the EU, there have been concerns over the costs and the impact on competitiveness, while others have welcomed the measure as an essential tool in reducing global emissions and fighting climate change.

Links:

Carbon Border Adjustment Mechanism - House of Commons Library (parliament.uk)

BPF Member Briefing: Understanding CBAM - A Quick Overview for the Plastics Industry