The government has opened a consultation on the UK's approach to carbon pricing after Brexit, to consider various options to enable the UK continue to meet its carbon reduction targets after we leave the EU.

The consultation considers a UK equivalent linked to the EU emissions trading system (ETS), and alternatives such as a carbon emissions tax (CET). Finance Act 2019 already includes provision for a CET which would come into force in the event that the UK leaves the EU without a deal.

The government’s preference is to establish a UK national greenhouse gas emissions trading system (UK ETS) which would be linked to the EU ETS.

Alternative options included in the consultation are:

  • A standalone domestic ETS
  • A new 'carbon emissions tax' as described by HMRC in a technical note published at Budget 2018
  • Joining the next phase of the EU ETS; currently the UK has an obligation to enact this into domestic law by 9 October 2019.

However no specific details are included about how a UK CET would work. 

Responses to the consultation which may be taken into account in developing policy for a future carbon tax, should be sent to This email address is being protected from spambots. You need JavaScript enabled to view it. or at by 12 July 2019.

Links to our guides:

Finance Act 2019

External link:

The future of UK carbon pricing