Labour welcomes the Government's net zero strategy but highlights significant flaws, including a lack of credible plans in several areas and insufficient investment. The Treasury review argued against borrowing for the transition despite its benefits to future generations. Labour criticises the Chancellor's Budget for ignoring climate change and failing to invest adequately in the green economy. The MP also questions the UK's emissions trading scheme, asking about expansion into more sectors, international linkage, market stability, and further carbon pricing plans.

Agrees with the need for low-carbon technologies but highlights concerns about protecting vulnerable groups and preventing carbon leakage. Criticizes insufficient grants for heat pump installations, advocating for fairer energy efficiency measures and transparent reinvestment of carbon tax revenues into green initiatives. Calls for a just transition commission to advise on fairness and policy transparency. Mr Brown inquired about measures included in the Budget aimed at helping the airline industry decarbonise.

Mr Mayhew argued that the free market should play a significant role in addressing carbon emissions, suggesting that businesses need to be incentivised through a price for carbon. He highlighted that currently only about one-third of UK manufacturing is affected by carbon pricing through the Emissions Trading Scheme (ETS), while imports are not assessed for their carbon content. Mr Mayhew proposed a Carbon Border Adjustment Mechanism (CBAM) as a solution, which would assess products at the border for their carbon content and apply tariffs to create a level playing field. He cited evidence from the EU's draft CBAM Bill that automobile manufacturers in South Africa are already seeking to reduce carbon content due to potential tariffs. I want to make it absolutely clear that I am not a protectionist. If a CBAM is to be successful, it is important that we ban the P-word. The tariff has to be applied at exactly the same level as that used in the domestic economy. Mr Mayhew explained that the price reduction for heat pumps is not due to product cost but rather because of the mechanism of installation, suggesting that mass production by large suppliers will bring prices down.

Encouraged Members to wear masks and follow covid lateral flow testing guidance.