Aerospace Industry: Energy
The question
To ask the Secretary of State for Business and Trade, what steps he is taking to ensure that increased energy costs do not cause carbon leakage in the UK’s aerospace supply chain.
Answered by Chris McDonald
The Government recognises the risk of carbon leakage from higher energy costs for internationally traded sectors such as aerospace. From April 2027, the British Industrial Competitiveness Scheme will provide support to eligible manufacturers helping them to reduce energy costs by up to £40 per megawatt hour. The Government is introducing a UK Carbon Border Adjustment Mechanism from 2027, which will place a carbon price on some of the most emissions intensive industrial goods imported to the UK. Government also supports aerospace decarbonisation and competitiveness through research and development funding, including the Aerospace Technology Institute Programme, and ongoing engagement with industry.
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