UK To Impose A Competitive Carbon Tax After No-Deal Brexit

Posted: September 10, 2019 by oldbrew in Brexit, climate, Emissions, government
Tags: , ,

Photosynthesis: nature requires carbon dioxide


A hint of commonsense in post-Brexit climate policy, if or when we get there? So-called ‘carbon’ taxes may well be a pointless nonsense, but if one has to be endured then the lower the better.

The United Kingdom is set to impose a £16 per ton tax on carbon if it leaves the European Union without a deal on October 31, according to government plans, reports The GWPF (from Forbes).

If the UK leaves the EU without a deal, it will also leave the EU’s Emissions Trade System (ETS), the centrepiece of the bloc’s efforts to meet European countries’ emissions reduction obligations.

The cap-and-trade system requires power plants and industries to purchase permits to emit more carbon than they are allocated for free in the system.

In the event of no-deal, the UK would replace the ETS with a carbon tax “to help meet the UK’s legally binding greenhouse gas reduction commitments under the Climate Change Act,” the government’s no-deal preparedness guide states.

“The tax would apply from November 4 2019 to all stationary installations currently participating in the EU ETS”.

The tax would differ from the EU’s cap and trade system because it would be a set amount rather than creating a market for buying and selling permits to emit.

A flat rate of £16 would be applied to each ton of carbon dioxide emitted over and above the free allowance the installation would have received under the EU ETS.

But while a tax might sound more onerous than a market, analysts say that this tax approach will mean an easier ride for companies in the UK than in the EU – potentially distorting the European carbon market and putting the UK at risk of failing to meet its emissions reductions targets.

The price of carbon in the EU ETS is currently around £26 per ton. The UK’s rate would be £10 cheaper.

Source here.

Comments
  1. Bob Greene says:

    A tax of 0 would be much more competitive

  2. ivan says:

    If/when the UK manages to escape from the yoke of the EU the first thing that should be done is to repeal the Climate Change Act 2008 in its entirety, including disbanding the CCC and having its members investigated for such things as insider trading. Let the green blob have its temper tantrum but ignore them, they will eventually calm down. The problem is that there are NO politicians in the country with the guts to what is necessary to restore the country.

    There should also be a negative carbon tax for real power stations paid for by the unreliable renewable industry (a reverse subsidy).

  3. oldbrew says:

    Blah blah…

    EU COUNTRIES HAVE ‘NO PLANS’ TO END SUPPORT FOR FOSSIL FUELS
    Date: 09/09/19EurActiv

    Not a single EU member state has so far spelled out a comprehensive plan to phase out fossil fuel subsidies, despite a commitment taken at the G20 ten years ago to eliminate them, according to a fresh analysis of the bloc’s 28 National Energy and Climate Plans.

    Only nine EU countries have reiterated their commitment to end fossil fuel subsidies as part of their national plans, according to the analysis by the Overseas Development Institute (ODI), Friends of the Earth Netherlands, and Climate Action Network (CAN) Europe.

    And while six of them envisage concrete steps, these are often limited to targeted subsidy schemes, rather than a comprehensive plan, the analysis found.

    https://www.thegwpf.com/eu-countries-have-no-plans-to-end-support-for-fossil-fuels/

  4. stpaulchuck says:

    Old Brew, are we back to that nonsense that a depletion allowance is somehow a subsidy?? We get that here in the US on a regular basis.

  5. ivan says:

    oldbrew, I have to ask what are these fossil fuel subsidies they talk about? As far as I can see there are no subsidies paid to those using fossil fuels to generate power. There may be some tax cuts that they are entitled to, just like every other business, but subsidies they are not. The only people that get subsidies are the renewable industry who should have their subsidies withdrawn because their ‘fuel’ is free for everyone.

    The problem is the likes of greenpeace, friends of the earth and the other groups haven’t a clue about how taxes work since they never seem to pay any.

  6. BoyfromTottenham says:

    Proposing a ‘carbon’ tax at all sounds like the enviro-bureaucrats ensuring that they look busy after Brexit, and can mount a case for not having their cozy sinecures abolished.

  7. Gamecock says:

    It’s just a tax. Making it Green is just a ploy to get the people to accept it.

    They’d take all your money if you let them.

  8. cognog2 says:

    Like Ivan above I had hoped that post Brexit the U.K. would revisit the Climate change Act and knock a bit of common sense into this emissions farce and climate hysteria..

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