Implications of UK's carbon policy shift on exporters facing EU carbon border taxes
The Rishi Sunak Government's decision to delay or weaken UK climate targets has stirred concerns among environmentalists and industry players alike. This shift has not only impacted the UK's carbon market but also raised potential challenges for exporters facing EU carbon border taxes. Let's delve into the details of this evolving scenario.
The UK's carbon market has witnessed a significant downturn, with prices plummeting to less than half of the equivalent EU carbon cost. This decline, exemplified by UK carbon prices hitting a low of £33 per tonne while the EU price stands at €82 (£71), indicates a substantial gap in carbon pricing dynamics.
