Key insights
- The UK will eliminate its carbon tax on electricity generation in 2028, potentially incentivizing fossil fuel power production. This could have a minor negative impact on US clean energy companies if it creates a competitive disadvantage in global markets, but the effect is likely limited due to the distance and differing policy environments.
Investing.com -- Britain will eliminate its carbon tax on electricity generation starting in April 2028, the government announced on Thursday.
The tax, known as the carbon price support, was introduced in April 2013 to make fossil fuel power production more expensive as part of Britain’s efforts to meet climate targets by taxing emissions from power plants.
In last year’s budget, the government had frozen the tax at £18 ($24) per metric ton of carbon dioxide until April 2028.
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