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Britain to scrap carbon tax on electricity generation from April 2028\nOverview of Britain’s Carbon Price Support Policy<\/p>\n
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Published by Global Banking & Finance Review\u00ae<\/p>\n
Posted on April 16, 2026<\/p>\n
2 min readBritain to scrap carbon tax on electricity generation from April 2028
\nOverview of Britain’s Carbon Price Support Policy<\/p>\n
By Susanna Twidale<\/p>\n
Background and Introduction of the Carbon Tax<\/p>\n
LONDON, April 16 – Britain’s carbon tax on electricity generation will be scrapped from April 2028, the government said on Thursday as it seeks to curb soaring energy costs.<\/p>\n
Britain introduced the tax, called the Carbon Price Support, on emissions from power plants in April 2013 as part of its efforts to meet climate targets, by making polluting fossil fuel power production, particularly\u00a0coal, more expensive.<\/p>\n
Tax Rate and Previous Policy Decisions<\/p>\n
The government had frozen the tax at 18 pounds ($24) per metric ton of carbon dioxide until April 2028, in last year’s budget.<\/p>\n
Government Statements on Policy Change<\/p>\n
“CPS has done its job and is no longer fit for purpose. Coal has been driven off the grid,” Dan Tomlinson, exchequer secretary to the treasury, said in a written statement to parliament announcing the change.<\/p>\n
Impact on Energy Sector and Climate Goals
\nClosure of Coal Plants and Shift to Renewables<\/p>\n
Britain’s last coal-fired power plant closed in 2024 and the government has been ramping up renewable power as it strives to meet a target to largely decarbonise its electricity sector by 2030. <\/p>\n
Clean Power 2030 Mission<\/p>\n
“With our Clean Power 2030 mission, we are already reducing our electricity system\u2019s reliance on volatile fossil fuels and we no longer need this additional tax to provide incentives in the system to decarbonise our grid,” Tomlinson said.<\/p>\n
Additional Costs and Emissions Trading System<\/p>\n
The tax is paid by fossil fuel electricity generators on top of costs under the country’s Emissions Trading System, where benchmark\u00a0prices currently trade around 49 pounds per ton.<\/p>\n
Additional Information<\/p>\n
($1 = 0.7381 pounds)<\/p>\n
(Reporting by Susanna Twidale; Editing by Toby Chopra and Emelia Sithole-Matarise)<\/p>\n","protected":false},"excerpt":{"rendered":"Editorial & Advertiser disclosure Global Banking & Finance Review\u00ae is an online platform offering news, analysis, and opinion…\n","protected":false},"author":2,"featured_media":898164,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5018,3,4],"tags":[748,253209,253211,253212,393,4884,1144,712,16,253210,15,1764],"class_list":{"0":"post-898163","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-britain","8":"category-uk","9":"category-united-kingdom","10":"tag-britain","11":"tag-britain-carbon-tax-removal","12":"tag-carbon-price-support-end-date","13":"tag-electricity-emissions-regulation-uk","14":"tag-england","15":"tag-great-britain","16":"tag-northern-ireland","17":"tag-scotland","18":"tag-uk","19":"tag-uk-electricity-generation-tax","20":"tag-united-kingdom","21":"tag-wales"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116414877101831546","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/898163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=898163"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/898163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/898164"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=898163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=898163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=898163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}