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Carbon Tax

Volume 715: debated on Monday 7 December 2009

Question

Asked by

To ask Her Majesty's Government what level of carbon tax and price per ton of carbon would enable the European Union to raise €50 billion of new money by 2020 were the whole sum to be raised exclusively by that method. [HL55]

The Government do not generally comment on the approach that other EU member states may take towards tax. The design, number of exemptions and whether or not a carbon tax is applied to companies in the EU Emissions Trading Scheme are just a few of the many variables that would have a significant impact on the carbon price required to raise €50 billion of additional revenue by 2020. Raising such a tax would also have second order impacts on receipts from other taxes that would differ widely across the EU. The Government are not therefore in a position to comment at this time.