Effective Carbon Prices Update

In 2018, the Catapult published Current Pattern of Effective Carbon Prices, which summarised the then pattern of economic signals in the UK for reducing emissions in different sectors. The aim of that analysis was to quantify and compare the effective carbon prices that arise from existing tax, subsidy, and other policy instruments across the economy. The intention was that it formed the baseline from which to assess in more detail the different sector drivers and future options for policy reform. Carbon policy has changed significantly in the intervening years since 2018. The shift to a Net Zero target by 2050, along with wider macro-economic impacts, such as the pandemic, inflation,…