Aligning the UK’s climate, trade and development policies: - The case of the UK

It assesses the case for and severe hardship for people around the globe the UK introducing a CBAM and the possible risks, and leading to the loss of natural habitats and including problems in assessing carbon leakage and biodiversity. [...] There will be countries.”5 In March 2023 the UK government a review of the scheme during the transitional phase launched a consultation on a range of‘ “potential which will include consideration of extending the policy measures to mitigate future carbon leakage scope of the CBAM to other sectors covered by the risk”. [...] Developed a potential UK CBAM, the Centre for Inclusive Trade economies including the UK, EU and United States Policy (CITP) found “The impact of the UK CBAM could are providing significant support to their industries to be very significant for the exports of several LDCs and decarbonise.14 For developing countries, most of which Low/Low Middle Income Countries to the UK. [...] country Parties arising from the impact of the The historical factors that have locked implementation of response measures” developing countries into the carbon- The Paris Climate Agreement (2015) commits intensive but lower value-added stages of signatories to respecting the principle of production chains. [...] As necessary to support developing countries an alternative to a CBAM for developing countries, meet the challenges of the climate emergency, the UK can seek to reduce the risk of carbon including but not limited to, decarbonising their leakage by providing the finance, investment and industrial sectors.