The UK’s current system for pricing carbon is inadequate, inconsistent and unequal. Not only must carbon pricing go much further if the UK is to reach net zero by 2050, but taxes on pollution must also be made fairer in order to equalise the impacts of carbon pricing on different sectors of the economy and build political support for reform.
This report proposes a three-part plan for reforming the UK’s carbon pricing framework. The UK must place a consistent price on all carbon emissions; take effective action by 2030; and, build a lasting public and political consensus around carbon pricing.