A new inquiry from the
Energy Security and Net Zero Committee will assess how the UK
could best use its trade policy to help meet its net zero goals.
A briefing from the House
of Commons Library sets out how trade policy can both promote
and hinder climate goals, promoting economic efficiency and
spreading green technology on the one hand, but also leading to
the depletion of natural resources. Making the economy greener
also requires investment and may increase costs, placing domestic
businesses at a competitive disadvantage.
The inquiry will examine whether current UK trade policy is
consistent with emission cutting targets and whether it might go
further in pursuit of net zero.
It will also look at the role of the UK’s new carbon border
adjustment mechanism (CBAM), which is due to be implemented in
2027 and will impose a levy on certain carbon-intensive imports
from countries with a lower or no carbon price.
, Chair of the ESNZ
Committee, said: “International trade can play a key
role in spreading green technologies and expertise across the
world, but can also lead to a depletion of natural resources and
increase in trade of carbon-intensive goods. There is also the
risk that without greening global trade rules, high domestic
standards could be undermined by cheaper imports produced to
lower standards. Our inquiry will be examining whether current UK
trade policy is consistent with efforts to cut emissions and what
trade initiatives could boost the global drive towards net zero.”
Terms of reference
The Committee is inviting submissions by April
19 based on the following questions:
- How can trade help in the pursuit
of net zero?
- Is the UK’s trade policy consistent
with its goals for net zero?
- How can the UK’s trade policy
further help with its goals for net zero?
