Overview
- The Conservatives, which announced the plan Wednesday, would abolish the UK Emissions Trading Scheme, carbon price support, and a planned carbon border levy known as CBAM.
- Industrial leaders including Sir Jim Ratcliffe and ExxonMobil’s UK chair back the pledge, saying current carbon bills run to tens of millions and are driving investment overseas.
- Labour’s industry minister Chris McDonald accuses Kemi Badenoch of hypocrisy over reversing policies she helped introduce and calls the promise an unfunded commitment that would hammer industry.
- Independent estimates suggest ending the ETS would cost about £3.1bn by 2030 and wipe out roughly £3bn in projected 2030 receipts, with experts warning UK exporters could face EU carbon charges instead.
- The UK ETS began in 2021 to cap emissions from heavy industry, power and aviation, with maritime due in July, and it works by making firms buy tradable allowances for the carbon they emit.