UK to scrap carbon tax on power generation from April 2028
Britain will scrap its carbon tax on electricity generation in April 2028. The levy was introduced in 2013 to make fossil fuel power production more costly.
The government of the United Kingdom has announced that the carbon tax levied on electricity generation will be abolished starting in April 2028. This policy shift marks a significant change in the nation's fiscal approach to managing energy sector emissions. Known as the carbon price support, the tax was originally introduced in April 2013 as a primary mechanism to help meet climate targets. By making the production of power from polluting fossil fuels more expensive, the levy was intended to incentivize a transition toward cleaner energy alternatives. In previous budget updates, the government had frozen the tax rate at 18 pounds per metric ton of carbon dioxide through April 2028. Based on current exchange rates for the GBP/USD currency pair, this tax is valued at approximately $24 per metric ton. The decision to eventually scrap the levy follows years of use as a tool for decarbonizing the British power grid.
