Green money

Think tank: Bright Blue

Author(s): Josh Buckland

July 28, 2021

This report from UK think tank Bright Blue looks at a plan to reform UK carbon pricing.

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. The report concludes by recommending new policies to reshape and strengthen the UK’s carbon pricing framework, and ensure that there is no hiding place for carbon anywhere in the economy.