Last updated:
06 May. 2026
Commenting on a report by Energy UK on the impact of scrapping carbon pricing in the UK [1] Tom Cantillon, Senior Analyst at the Energy and Climate Intelligence Unit (ECIU), said:
“Scrapping the UK’s carbon taxes wouldn’t eliminate carbon costs, but it would divert billions of pounds in revenue from the Treasury to Brussels. The electricity sector, currently protected from the EU’s Carbon Border Adjustment Mechanism (CBAM) by the UK’s carbon price, would be hit hardest and fastest. Without a domestic carbon price, the UK’s own carbon border mechanism can’t function, leaving British industry exposed to carbon dumping.
“Carbon taxes have long been the preferred climate tool for those on the right of politics, because they use markets rather than regulation to cut emissions. Calls to scrap them raise big questions about what would be done instead to reach net zero and bring the climate back into balance.”
Notes to editors:
1. The report by Energy UK is published on Thursday 7 May.
For more information or for interview requests:George Smeeton, Head of Communications, ECIU, t: 020 8156 5305, m: 07894 571 153, email: george.smeeton@eciu.net