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<p>Electricity generation was not included within the initial sectoral scope of the
UK Carbon Border Adjustment Mechanism (CBAM), announced in December 2023. The approach
aligns with free allowance allocations, under the UK Emissions Trading Scheme (ETS),
which are not provided to electricity generators.</p><p> </p><p>In making the decision,
the government looked primarily at three factors: inclusion in the UK ETS, carbon
leakage risk, and feasibility and effectiveness.</p><p> </p><p>The sectoral scope
of a UK CBAM will remain under review. The design and delivery of a CBAM is subject
to consultation, closing on 13 June 2024.</p>
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