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Carbon Emissions: Taxation

Question for Department for Energy Security and Net Zero

UIN 18202, tabled on 5 December 2024

To ask the Secretary of State for Energy Security and Net Zero, what estimate he has made of carbon prices in 2030.

Answered on

10 December 2024

The price of carbon allowances in the UK Emissions Trading Scheme is set by the market and not the Government. A market-determined price of carbon is the most efficient way to decarbonise the traded sector.

It is the role of the UK ETS Authority to set the scheme’s cap, which sets a limit on the volume of greenhouse gases participants captured by the scheme can emit. This ensures the covered sectors will reduce their emissions in line with net zero and establishes a long-term investment signal.

Named day
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