Defence: Procurement
The question
To ask the Secretary of State for Defence, what assessment he has made of the potential impact of the introduction of CBAM in January 2027 on defence procurement.
Answered by Luke Pollard
The UK Government will introduce a Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027 to address the risk of carbon leakage, and support efforts towards industrial decarbonisation to achieve net zero.
Initially, the CBAM will apply only to specific imports from a limited number of sectors at risk of carbon leakage, including aluminium, cement, fertiliser, hydrogen, iron and steel. These sectors collectively account for less than 3% of total UK imports. The government expects the CBAM to have a negligible inflationary impact on consumers in the near term.
The Ministry of Defence (MOD) will continue to engage as the policy develops to fully assess the implications for Defence. The MOD is committed to addressing climate and environmental challenges, complying with environmental legislation and standards, while ensuring Defence activities and national security are protected.
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