UK Emissions Trading Scheme 2026-02-10
2026-02-10
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The Liberal Democrats are concerned that the UK emissions trading scheme does not reflect recent changes in net zero emission targets, which could lead to underestimation of carbon abatement costs for major projects.
If he will update the UK emissions trading scheme to reflect the carbon abatement costs of major projects. In 2021, it was predicted that carbon abatement for a third runway at Heathrow would cost £100 million, and costs will have only risen since. According to the emissions trading scheme, just 15% of the clean-up costs of expansion will be covered by Heathrow; the rest will fall on the taxpayer.
The Government do not comment on or interfere with the carbon price. Ultimately, the price is set by the market to ensure that the ETS drives decarbonisation where it is cheapest.
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Assessment & feedback
Specific request for updating the scheme was avoided; only general statement about market setting prices given.
The Government Do Not Comment On Or Interfere With The Carbon Price.
Response accuracy
Q2
Partial Answer
▸
Context
The Liberal Democrats are concerned that the UK emissions trading scheme does not reflect recent changes in net zero emission targets, which could lead to underestimation of carbon abatement costs for major projects.
In 2021, it was predicted that carbon abatement for a third runway at Heathrow would cost £100 million, and costs will have only risen since. According to the emissions trading scheme, just 15% of the clean-up costs of expansion will be covered by Heathrow; the rest will fall on the taxpayer.
The Government do not comment on or interfere with the carbon price. Ultimately, the price is set by the market to ensure that the ETS drives decarbonisation where it is cheapest.
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Assessment & feedback
Specific request for updating the scheme was avoided; only general statement about market setting prices given.
The Government Do Not Comment On Or Interfere With The Carbon Price.
Response accuracy
Q3
Partial Answer
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Context
Concerns have been raised about the impact of increased carbon taxes on households and industry, with some arguing that it discourages investment and increases reliance on dirtier imports.
Last week, the Labour party voted to increase the carbon tax, which has already doubled due to its policies. It now accounts for over 10% of household electricity bills and represents a £5 billion annual tax burden. Can the Minister explain why Labour wants to impose higher costs on industry and households?
I am not sure if the shadow Secretary of State is conflating the various carbon taxes with the emissions trading scheme, but to be clear: the Government do not set or comment on the value of the carbon in the emissions trading scheme. That is a matter for the market.
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Assessment & feedback
Specific inquiry about Labour's policy was avoided; instead, the focus shifted to explaining how the current system works.
I Am Not Sure If The Shadow Secretary Of State Is Conflating The Various Carbon Taxes With The Emissions Trading Scheme.
Response accuracy