Ruth Herbert, Chief Executive, The Carbon Capture &
Storage Association said:
“Fantastic to see today’s commitment to a Carbon Border
Adjustment Mechanism, which is a good starting point for tackling
carbon leakage on the most carbon intensive products. This
will help some UK manufacturers to invest in low carbon
technologies such as Carbon Capture, Utilisation and Storage
(CCUS), to develop new low carbon products, without fear of being
undercut by producers elsewhere. This is a smart move,
given the UK’s geological assets and technical capabilities,
which mean it has a clear advantage in the transition to a global
net zero economy. The details of this policy will need to
ensure that exports are not disadvantaged, and that other
sectors, such as refining or electricity production can benefit,
as many are ideally situated in industrial clusters where they
can deploy CCUS.
Combined with the UK government’s recent announcement at COP28,
alongside Canada, Germany and the US, to use public procurement
to buy low carbon steel, cement and concrete, this is very
welcome news to those who are trying to develop the low carbon
industries of the future. It is also an important step for the
long-term development of the UK CCUS industry, alongside further
deployment measures, which we hope to see in the government's
'CCUS vision to 2035' later this week.”
, Head of Trade Policy, the
British Chambers of Commerce,
said:
"News of a carbon border adjustment mechanism (CBAM) for the UK
is very much welcome. It is a logical and key enforcement element
of lowering carbon emissions in the UK economy and tackling
greenhouse gas releases elsewhere in the world.
“Today's decision will provide certainty for investors and aid
future growth and investment in low carbon sectors. We are keen
to work closely with government and industry on the arrangements
for phasing in the UK CBAM by 2027. A key issue will be the
linkage of the UK and EU Emissions Trading Schemes (ETS), so that
we avoid unnecessary trade and fiscal barriers for UK goods
exports."
Clare Jackson, Chief Executive Officer, Hydrogen
UK:
“Hydrogen UK supports the introduction of this Carbon Border
Adjustment Mechanism (CBAM). Carbon Pricing is one of the key
tools available to accelerate decarbonisation and ensure
polluters pay the price of their emissions. Historically,
implementing an effective carbon price has been challenging due
to the risk of industries relocating to regions without strong
climate policy. The CBAM will reduce this carbon leakage risk and
ensure the UK can charge a strong price for emissions,
incentivising the switch to low carbon energy such as hydrogen,
while protecting UK industry from cheap imports.”
John Egan, Peak Cluster Project Director
said:
“Peak Cluster will decarbonise 40% of the UK’s cement and lime
production by 2030. An environmental and economic
imperative, the project is essential for a sustainable
construction sector in this country.
"We welcome the decision to implement a CBAM as a very positive
step in encouraging investment into essential industrial
decarbonisation.”
Stephen Phipson, Chief Executive of Make UK,
said:
“This is welcome news for Energy Intensive Industries and a key
recognition of the need to secure the competitiveness of key
foundation industries. However, it is now essential this scheme
is implemented as soon as possible to align with EU timescales
and ensure a level playing field to prevent potential carbon
price discrepancies. The Government should also look to adopt a
flexible approach to its application as each sector and,
material, has specific circumstances relating to their respective
markets.
“Government must now engage with all stakeholders in
manufacturing, including the supply chain, to ensure a
comprehensive approach towards achieving environmental goals
without imposing a pre-determined solution. Mitigating carbon
leakage should provide clarity and long-term certainty to
businesses, enabling them to invest and grow.”
