Aviation: Costs
The question
To ask the Secretary of State for Energy Security and Net Zero, what estimate has been made of the potential cost impact of the UK ETS and domestic carbon pricing mechanisms on the cost of UK domestic flights between 2026 and 2050.
Answered by Chris McDonald
Due to uncertainty surrounding both future emissions and carbon prices, the Government has not produced an estimate of the potential impact of the UK ETS on the cost of domestic flights between 2026 and 2050. The costs faced by aircraft operators will depend on the level of emissions covered by the UK ETS and the future price of UK ETS allowances. DESNZ publishes traded carbon values for modelling purposes, which provide scenario-based projections of future carbon prices rather than forecasts. As uncertainty increases over longer time horizons, any estimates of future UK ETS costs should be treated with caution.
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