Air Pollution: Taxation

Treasury written question – answered on 18th October 2021.

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Photo of Geraint Davies Geraint Davies Labour, Swansea West

To ask the Chancellor of the Exchequer, whether he plans to introduce taxes on air pollutants produced by industry.

Photo of Helen Whately Helen Whately The Exchequer Secretary

The UK has been at the forefront of reducing industrial pollution. In January 2021, the UK launched its own Emissions Trading Scheme (ETS) to replace membership of the EU ETS. The UK ETS already puts a price on carbon emissions from energy intensive industries, as well as from power generation and some aviation, including domestic, UK-EEA, and UK-Gibraltar flights.

The UK also has a strong and proportionate regulatory framework in place to require industry to reduce emissions and industry has responded with investment and innovation to meet these standards. Regulations such as the Environmental Permitting (England and Wales) Regulations 2016 play an important role in ensuring regulators and industry work together effectively to reduce pollution through a robust licensing and permitting regime. The Government recently consulted on creating a best available techniques process for the UK in which industry and regulators will reduce emissions by setting new standards for complex industrial processes.

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