Carbon Emissions: Taxation
(asked on 3rd May 2023) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made a comparative assessment of the competitiveness of the UK's carbon taxation regime.
This question was answered on 9th May 2023
The UK Emissions Trading Scheme is our main carbon pricing scheme and promotes cost-effective decarbonisation by allowing businesses to cut carbon where it is cheapest to do so.
The Government remains committed to supporting the competitiveness of UK sectors.
This is why we protect ETS participants by allocating free allowances, with installations vulnerable to carbon leakage receiving up to 100% of their emissions allowances for free based on sector benchmarks.