Article: Higher carbon prices could raise £27bn for green recovery by 2030, experts tell UK Government

The UK's price on carbon will need to reach £75 per tonne by 2030 if the nation is to meet its 2050 net-zero target - a price which would raise up to £27bn of finance for low-carbon sectors.

That is the key recommendation of a new white paper from the Zero Carbon Campaign – a commission of leading scientists, business leaders, environmental and academic experts tasked with developing practical policy and business recommendations for transitioning to a net-zero economy.

According to the report, carbon prices should begin to be increased incrementally from 2021 and should apply to all upstream producers of emissions. Different prices should apply to different sectors but, ultimately, the average should be around – but no higher than - £75 per tonne of CO2e.

Due to its contribution to national annual emissions and logistical difficulties with improving technologies, domestic heating should be prioritised, the report concludes. Ministers must announce a carbon price trajectory for the sector “immediately” and implement new rules within this parliament, the report recommends.