Alex Cunningham – 2016 Parliamentary Question to the Department for Business, Innovation and Skills
The below Parliamentary question was asked by Alex Cunningham on 2016-04-13.
To ask the Secretary of State for Business, Innovation and Skills, with reference to page one of the UK/France joint non-paper on the Implementation of Tiered Free Allocation in Phase IV of the EU Emissions Trading System, what the evidential basis is for the assumption that the UK cement industry can pass on additional costs to customers of purchasing carbon dioxide allowances without risking carbon leakage.
Anna Soubry
The UK wants to see continued support for British industry as they decarbonise. In the context of a declining EU Emissions Trading System cap it is essential that free allowances should be focussed on those sectors at greatest risk of carbon leakage. Sectors at greatest risk of carbon leakage have high carbon costs and are highly exposed to international trade.
The proposed tiering scenarios set out in the UKs position paper are indicative and do not represent a confirmed UK Government position. We recognise the concerns of the cement sector and will continue to work with them to clarify data issues and consider further scenarios to those set out in the UKs proposal.
