Long-term values for the cost of carbon in the United Kingdom

The United Kingdom (UK) will increase carbon emission prices for decisions that lock in carbon emissions.

Energy & Waste

2 min read

Photography iStock

The United Kingdom (UK) has an emissions trading scheme, but it recognises that emission prices produced by the scheme aren’t appropriate for decisions that lock in carbon emissions.95 Since 2009, the UK has used carbon values to assess policy proposals. These values are based on estimates of the costs to society of achieving carbon-emission targets. Like New Zealand, the UK recently adopted a target of net-zero carbon emissions by 2050. To be consistent with its new target, the UK government has recently announced a new carbon value of £245 per tonne for 2021 and an intention to increase it to £378 per tonne by 2050.96 Converted to New Zealand dollars, these are equivalent to NZD$475 per tonne and NZD$733 per tonne respectively.97