Commons Sense

House of Commons · Ministers' Questions

UK Emissions Trading Scheme

Tuesday 10 February 2026 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Sarah Olney questioned the UK Government about updating the emissions trading scheme to reflect higher carbon abatement costs for major projects.
  • The Government stated that they do not interfere with the carbon price, which is determined by the market to drive decarbonisation efficiently.
  • Claire Coutinho inquired about the Labour party's vote to increase carbon taxes and their impact on household electricity bills and industry costs.

Topics (select to filter)

Questions & Answers

Q1 Sarah Olney Lib Dem Richmond Park
Climate
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.

Question

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.

Answer from Chris McDonald

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.

Partly answered

Not addressed: Specific request for updating the scheme was avoided; only general statement about market setting prices given.

How: The Government Do Not Comment On Or Interfere With The Carbon Price.

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Q2 Sarah Olney Lib Dem Richmond Park
Climate Energy
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.

Question

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.

Answer from Chris McDonald

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.

Partly answered

Not addressed: Specific request for updating the scheme was avoided; only general statement about market setting prices given.

How: The Government Do Not Comment On Or Interfere With The Carbon Price.

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Q3 Claire Coutinho Con East Surrey
Economy Climate Energy
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.

Question

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?

Answer from Chris McDonald

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.

Not addressed: Specific inquiry about Labour's policy was avoided; instead, the focus shifted to explaining how the current system works.

How: I Am Not Sure If The Shadow Secretary Of State Is Conflating The Various Carbon Taxes With The Emissions Trading Scheme.

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