Future of carbon pricing examined
13 October 2020
The Business, Energy and Industrial Strategy Committee holds a session looking at the future of carbon pricing and UK arrangements for an emissions trading scheme (ETS).
- Watch Parlaiment TV: UK Emissions Trading System Common Framework
- Inquiry: UK Emissions Trading System Common Framework
- Business, Energy and Industrial Strategy (BEIS) Committee
Thursday 15 October 2020, virtual meeting
- Adam Berman, EU Policy Director, International Emissions Trading Association (IETA)
- Prof Jos Delbeke, European University Institute; former Director-General of the European Commission's DG Climate Action
- Prof Sam Fankhauser, Director, Grantham Research Institute on Climate Change, LSE
- Frank Aaskov, Coordinator, Manufacturers' Climate Change Group
- Debbie Baker, Public Affairs Director, CF Fertilisers UK Ltd
- Peter Mather, Group Regional President Europe and Head of Country, UK at BP
- Emma Pinchbeck, Chief Executive, Energy UK
The BEIS Committee will be looking at options for the future as the UK leaves the EU Emissions Trading System. Witnesses include representatives from BP, Energy UK, and a number of experts, academics, and representatives, including from industries affected by the transition [full witness details below].
Carbon-pricing was one of the topics raised during the recent MyBEIS public-engagement exercise undertaken by the BEIS Committee.
Ahead of the session, Darren Jones, Chair of the BEIS Committee, wrote to the Minister Kwasi Kwarteng, with a series of questions about the Common Framework for a UK ETS and the Carbon Emissions Tax consultation. In November, the BEIS Committee will be holding a session with Kwasi Kwarteng, BEIS Minister, as part of the Committee’s scrutiny of the UK ETS Common Framework.
The session on Thursday morning takes place amid recent media reports suggesting the Chancellor is examining proposals for a UK-wide carbon tax to replace the existing EU carbon-reduction scheme when the transition period finishes at the end of the year.
The evidence session will examine questions such as the difficulty posed to businesses by the current uncertainty over the future of UK carbon pricing outside of the EU ETS and also the advantages and disadvantages of the different options facing the UK as it leaves the EU ETS, including a standalone UK ETS and a Carbon Emissions Tax.
The hearing is also likely to look at topics relating to competitiveness and the implications for broader policy areas, including the UK’s Net Zero target, COP26, and international trade.
The carbon pricing session follows the public engagement ‘MyBEIS’ evidence hearing in July, where the BEIS Committee heard a pitch by Hannah Dillon, Head of Campaign, Zero Carbon Campaign, on the ‘Future of Carbon Pricing in the UK’.
At the public hearing in July, the Business, Energy and Industrial Strategy (BEIS) Committee heard a series of pitches as the case was made for business, energy policy or climate change issues to be investigated by the BEIS Committee over the course of this Parliament. The ‘dragons-den’ style session format followed a call (in March) for the public to submit their own ideas for future Committee inquiries.