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Carbon offshoring poses competition risk for UK firms

    As well as overstating the UK’s performance on climate change, the CPS argues the practice also discriminates against UK companies which are subject to climate levies, planning and regulatory hurdles that their competitors overseas do not have to face, such as the Carbon Price Floor which taxes emissions.

    The CPS said a new carbon tax could be calculated based on the electricity mix of the exporting country, making it far simpler to introduce than economy-wide carbon taxation. This would also incentivise other countries to invest in nuclear or renewable energy and generate revenues that could be used to cut costs for consumers.

    “Britain’s new legal commitment to cut greenhouse gas emissions to net zero by 2050 carries Herculean responsibilities to decarbonise the energy, transport, industry and housing sectors.

    A carbon border tax would provide a far more accurate picture of Britain’s true carbon footprint, deter carbon offshoring and reduce global emissions,” said report author Tony Lodge.

     

    Read more here

    Date added: Monday 16th March 2020