Environment Report 2018

Figure 17: Carbon Allowance Price per Tonne Under EU ETS

30

25

20

3

15

Price (€/Tonne)

10

5

0

2012

2013

2014

2015

2016

2017

2018

Source: ICIS Carbon EU ETS Portal

Following the UK’s decision to leave the EU, the UK Government must choose an effective strategy to continue to reduce carbon emissions from UK industries in line with domestic targets. This could be as part of, or outside of, the EU ETS. Regardless of the approach, there must be a balance between improving business processes to achieve decarbonisation, while preventing carbon leakage away from the UK as the cost of carbon on the market increases.

29