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Publications / Consultation responses

Energy UK Position Paper: EU Carbon Border Adjustment Mechanism (CBAM)

This paper aims to highlight, to both the UK Government and the European Commission, the key concerns and remaining questions of Energy UK with regards to the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM).

The UK energy sector asks for the European Commission to address these outstanding concerns and questions in order for the sector to better understand how its CBAM will work in practice.

Whilst CBAMs can protect domestic production against imports from jurisdictions with lower carbon costs, Energy UK believes that CBAMs are sub-optimal to linked carbon markets. We, therefore, urge the UK Government to prioritise beginning negotiations with the EU to link the UK Emissions Trading System (ETS) with the EU ETS as soon as practicable.