Pa Daly (Kerry, Sinn Fein)
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196. To ask the Minister for Communications, Climate Action and Environment if he has calculated the impact that the carbon border adjustment mechanism will have in imported electricity from Britain; the amount by which he anticipates the cost to rise; and if he will make a statement on the matter. [10420/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The Carbon Border Adjustment Mechanism (CBAM) is an instrument implemented by the European Union to address the risk of carbon leakage. The EU’s ambition is to become climate neutral by 2050, and CBAM will aim to ensure that imported goods are subject to a carbon price equivalent to the carbon price of domestic production in the EU. CBAM affects the electricity sector by putting a price on emissions associated with electricity produced in countries outside the EU and imported into the EU. It aims to encourage sustainable practices and reduce carbon footprint. For electricity importers, compliance with CBAM initially involves reporting direct emissions associated with electricity production as an imported good from third countries on a quarterly basis, relying on supplier information.

From 1 January 2026, importers of electricity must buy CBAM certificates for emissions in imported electricity, just like in the Emissions Trading System in the EU for electricity. Currently, there is an ongoing simplification process being considered by the EU Commission. Until the exact details are clear any estimation regarding costs of CBAM is likely to be inaccurate. Overall, CBAM provides an opportunity for the electricity sector to embrace sustainability and contribute to environmental protection by positioning businesses as socially responsible and environmentally conscious players in the market.