UK ETS? Have your say on the future of UK carbon pricing
The UK Government and Devolved Administrations have launched a joint consultation on the UK’s approach to carbon pricing post-Brexit.
They are asking for stakeholder views on what a future scheme should look like if the UK cannot continue to take part in the EU’s Emissions Trading Scheme (EU ETS).
The consultation states that it wants the scheme to be “at least as ambitious” as the EU ETS and hopes it will “provide a smooth transition for relevant sectors.”
A UK national greenhouse gas emissions trading system (UK ETS) linked to the EU ETS is the UK Government’s and the Devolved Administrations’ preferred carbon pricing option, says the consultation document. It says that establishing a linked ETS has the significant benefit of creating a larger carbon market which will deliver more cost-effective emission reduction opportunities for UK businesses.
However, in the event that a linking agreement cannot be secured, the Government wants stakeholder views on alternative carbon pricing options. These include: a standalone domestic emissions trading system; a tax on carbon, similar to the policy described in the HMRC technical note “Carbon Emissions Tax”1; or participating in Phase IV of the EU ETS.
The consultation closes on 12th July. View the consultation details here.