Conservatives proposals to 'Axe the Carbon Tax': comment

In response to Conservative proposals to cut UK carbon taxes [1], Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU) said: "There are a multitude of reasons why British industry has suffered in recent years including cheaper labour costs in China and India and Brexit frictions, but perhaps the biggest hit in recent years has been the gas crisis following Russia’s invasion of Ukraine. That pushed up energy bills costing British industry nearly £20bn [2], and costs are now mounting again as conflict in the Middle East pushes up oil and gas prices once again.

"A well-designed carbon border adjustment mechanism could help rejuvenate British industry, helping make it more competitive with other cheaper countries, and many businesses have been calling for one for years. But it’s predicated on a UK carbon price and if we don't have that revenues that would have been going to Treasury will instead by transferred into EU coffers when British industry exports to the EU, our largest trading partner. A significant amount of UK steel is exported to the EU each year. Market-based policies like carbon pricing and CBAM have long been advocated for by think tanks and politicians on the right of politics, so there's a big question around what you do instead to reach net zero emissions, given that is essential to stopping climate change."

ENDS

Notes to editors:

1. The Conservatives are announcing their plans to cut carbon taxes on Thursday 2 April. 

2. ECIU: https://eciu.net/analysis/reports/2025/budget-cost-of-energy-crisis-exceeds-nhs-englands-annual-health-spending 

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, t: 020 8156 5305, m: 07894 571 153, email: george.smeeton@eciu.net