Ceramics: Manufacturing Industries
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of not including imported ceramics in the scope of the Carbon Border Adjustment Mechanism from 1 January 2027 on UK ceramics manufacturers .
Answered by James Murray
Products from the ceramics sector will not be in scope of the UK CBAM upon implementation in 2027. The ceramic sector is, on average, less emissions intensive than those sectors within scope of the UK CBAM, and therefore relatively less exposed to carbon leakage risk. The sector also raised feasibility concerns in relation to potential implementation. The government will continue to work with industry to address these concerns and will consider potential inclusion at a later date.
The domestic ceramic sector participates in the UK Emissions Trading Scheme. Under the UK ETS, installations in sectors deemed at risk of carbon leakage receive free allowances. The UK ETS Authority is committed to ensuring adequate carbon leakage protection for participating sectors, and is conducting a review into the allocation of free allowances (Free Allocation Review) are better targeted to sectors most at risk of carbon leakage.
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