Carbon Emissions: Offshoring
The question
To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with Cabinet colleagues on preventing large organisations from offshoring emissions.
Answered by Kerry McCarthy
The Government is working cohesively to address carbon leakage risk across international and domestic actions.
The UK’s current main measure to address carbon leakage is free allocation under the UK Emissions Trading Scheme (ETS), which is under review by the UK ETS Authority. The government is additionally introducing a Carbon Border Adjustment Mechanism on 1 January 2027, developing voluntary product standards and an embodied emissions reporting framework, and working to address carbon leakage risk internationally through existing fora such as the Climate Club and World Trade Organisation.
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