Government to scrap Carbon Price Support: comment

 "The Carbon Price Support has been a quiet success story of UK carbon pricing, driving coal from generating nearly 40% of UK electricity generation to zero in a little over ten years [2]. The question now is one of sequencing. Remove the CPS before UK-EU ETS linkage is in place, and British electricity exports will be subject to EU carbon charges at the border [3]. That means carbon revenues flowing to EU coffers rather than funding schools and hospitals in the UK. This is the wider problem of calls to scrap UK carbon prices when Europe, our biggest export market, has just introduced carbon taxes at the border. If we don’t charge for carbon, they will and keep the money."