18:04 Dr Alan Whitehead (Southampton, Test) (Lab)

Since the 2020 order, from which this amendment order derives, the EU has adopted in principle a proposal for a new carbon border adjustment mechanism. That mechanism would deal with the consequences of carbon leakage—that is, where the EU’s carbon taxes and carbon trading arrangements mean that third countries have a considerable trade advantage, because they can import goods without such arrangements attached and bring them within the EU’s borders. As far as I know, the UK has not yet taken any action on considering or implementing a carbon border adjustment mechanism. If the EU proceeds with such a mechanism, as seems likely, the UK will be in an even worse position than it is now when it comes to carbon leakage. We will be external to a carbon adjustment mechanism, so we will have punitive elements against us. At the same time, people will be able to import goods into the UK, safe in the knowledge that they are not subject to the same sorts of arrangements.

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