Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason the Government has decided not to implement a carbon fee dividends scheme.

A carbon fee and dividend is an alternative form of carbon pricing policy. The UK already prices carbon through, for example, our participation in the EU Emissions Trading System (EU ETS).

UK Government is establishing a UK Emissions Trading System, with increased ambition on carbon pricing. The new system will ensure a smooth transition for businesses as the UK is set to leave EU system after the Transition Period at the end of the year, while also allowing us to have autonomy over its design and governance. Further detail can be found in The UK Government’s and Devolved Administrations’ full response to the public Consultation on the Future of UK carbon pricing, published on 1 June.