Chemicals and Energy Intensive Industries: Carbon Emissions
The question
To ask the Secretary of State for Energy Security and Net Zero, if his Department will make an assessment of the potential impact of increasing the UK carbon price to £147/tCO2 by 2030 on (a) energy-intensive manufacturing industries and (b) chemical industries.
Answered by Sarah Jones
The Department has no plans to make an assessment of the potential impact of increasing the UK carbon price to £147/tCO2 by 2030. The Department previously published an impact assessment in July 2023 of the impact of the moving to the current United Kingdom Emissions Trading Scheme (UK ETS) using the analysis at that time : https://assets.publishing.service.gov.uk/media/64b91b522059dc00125d267b/developing-uk-ets-main-impact-assessment.pdf
The Department produces its own traded carbon values for modelling purposes which are used to estimate the financial cost of purchasing allowances in the UK ETS under different scenarios. This figure of £147/tCO2 is higher than in any of the scenarios in those projections. The Department’s most recent projections can be found here: https://www.gov.uk/government/publications/traded-carbon-values-used-for-modelling-purposes-2024/traded-carbon-values-used-for-modelling-purposes-2024
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