The Environmental Audit Committee (EAC) of the United Kingdom (UK) House of Commons has called on the UK Government to develop plans for a carbon border adjustment mechanism (CBAM) to address carbon leakage as the date to achieve net zero emissions gets closer.
In its report, the EAC finds that the Government’s current approach, principally the allocation of free emissions trading scheme (ETS) allowances, is insufficient to drive effective decarbonization. It notes that the current situation also means that the UK applies a carbon price to domestic production but not to imports, which according to
Source EY
