Section 95 and Schedule 12: carbon emissions tax; Section 96: charge for allocating allowances under emissions reduction trading scheme


This short note first briefly describes the main features of the carbon emissions tax. Secondly, it highlights that the carbon emissions tax would mimic many design features of an ETS, which blurs the line between carbon taxation and emission trading. Thirdly, it discusses how such a carbon emissions tax could be the first step towards a simplified approach to carbon pricing in the UK. Finally, it concludes.