← Back to House of Commons Debates
Border Carbon Adjustment Tariffs and Decarbonisation
16 December 2020
Lead MP
Jerome Mayhew
Debate Type
Adjournment Debate
Tags
EconomyTaxationClimateBusiness & Trade
Other Contributors: 1
At a Glance
Jerome Mayhew raised concerns about border carbon adjustment tariffs and decarbonisation in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The MP argues that a border carbon adjustment policy could transform the UK's economic environment by making it attractive for manufacturing industries to adopt low-carbon technologies, thereby supporting the government’s levelling-up agenda and contributing to reaching net zero emissions. He highlights how such a system would balance environmental goals with competitiveness, preventing domestic industry from being undercut by imports from countries with less stringent carbon regulations. With examples in steel and energy sectors, he demonstrates potential economic benefits through increased tax revenue and competitive advantage for UK firms. The MP advocates a multilateral approach to avoid trade disputes but encourages the government to take bold steps toward implementation.
Argues that unilateral imposition of carbon border tax could disadvantage domestic consumers if other countries do not adopt similar measures. Emphasises need for multilateral cooperation and highlights UK's leadership role in climate-related financial disclosures.
Government Response
The Minister acknowledges the importance of carbon accounting and pricing as part of a broader international effort to address climate change, highlighting UK’s leadership on mandatory Taskforce on Climate-related Financial Disclosures-aligned disclosures. He stresses that unilateral action could disadvantage domestic consumers if not aligned with global efforts. The Minister indicates ongoing discussions with EU regarding border carbon adjustment implementation but reiterates the need for multilateral cooperation to prevent trade distortions. While supportive of innovative approaches, he emphasises the importance of ensuring such measures do not disproportionately impact lower-income households and stresses that further discussion at COP26 will be essential to shaping international consensus.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.