Scrapping carbon pricing would be a costly hit to British exporters and consumers

Mace | 7th May 2026 | Policy & Think Tanks
Photo by Jon Cherry/Getty Images
Photo by Jon Cherry/Getty Images

A new report reveals that axing carbon pricing would be a self destructive step for the UK economy.

Scrapping carbon pricing would hit British exporters with billions of pounds of extra taxes and lock them out of key overseas markets, according to a new report by Energy UK. These measures would also deter investment in the UK and fail to deliver on cutting energy bills.  The report shows that any bill savings from scrapping carbon pricing would be more than wiped out by the increased cost of gas for electricity generation, industrial use, and domestic heating, alongside increased Contracts for Difference (CfD) top-up payments.  In addition, British companies exporting to the EU would face an extra £10 billion of taxes from carbon border charges over the next ten years. Adam Berman, Energy UK’s Director of Policy and Advocacy said:  “It is an illusion that cutting carbon pricing would have any enduring benefit for UK competitiveness. Energy UK analysis highlights that scrapping carbon pricing would drive up gas prices in the UK, increasing energy bills, and exposing British exporters...

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