UK to lose £1.1bn in carbon-credit revenue in event of no-deal Brexit
The UK will lose more than £1.1bn in revenue as carbon-emitting companies escape paying for the pollution they cause if the country crashes out of the EU without a withdrawal agreement in October, according to Sandbag, a climate policy think-tank. From January, Brussels stopped providing carbon allowances, or credits, to the UK government for auction under the EU Emissions Trading Scheme, because of uncertainty around Britain’s position in the bloc. Under the cap and trade programme, the UK government receives millions of carbon allowances each year. Roughly 40 per cent of these are given to high-emitting companies, while the rest are auctioned, with the revenue kept by the Treasury to subsidise climate policies. The government has said that a no-deal Brexit would exclude the UK from participating in the ETS from November.
Financial Times - May 8, 2019View the full story here: https://www.ft.com/content/ff07fd54-6dc6-11e9-a9a5-351eeaef6d84