Carbon Emissions Tax (UK Brexit)

Exit day is 31st October.

I previously posted that a Carbon Emissions Tax was being considered, then it seemed it would not go ahead. Today 29 July, the Government issued updated guidance giving 4th November as the start of the Carbon Emissions Tax (in the event of no-deal). The Carbon Emissions Tax is already provided for by Part 3 of the Finance Act 2019.

Part 3 (if not already added to Subscribers EHS Legislation Registers & Checklists) will be added shortly, to the Brexit Law List, as part of the Brexit Law consolidation that is a work in progress.

The relevant Guidance section states : the updated Guidance is here (please read other parts also)

Carbon pricing

As set out at Budget 2018, if the UK leaves the EU in a no deal scenario, the UK government would introduce a Carbon Emissions Tax to help meet the UK’s legally binding carbon reduction commitments under the Climate Change Act.

In this scenario, for 2019 a rate of £16 would be applied to each tonne of carbon dioxide emitted over and above an installation’s emissions allowance. For permit holders outside the simplified reporting scheme this allowance would be based on the allocation of free EUAs that would have been allocated to installations under Phase III of the EU ETS. For those currently covered by the simplified reporting arrangements, the allowance would be based on their current emissions target. The rate for years beyond 2019 would be set at future fiscal events.

The tax would apply from 4 November 2019 to all UK stationary installations currently participating in the EU ETS. The aviation sector would not be subject to the Carbon Emissions Tax. Aviation operators would still be obliged to comply with greenhouse gas Monitoring Reporting and Verification requirements throughout 2019.