The UK freezes carbon tax at £18/tCO₂eq for 2021-22

The British government has decided to continue freezing its carbon tax called the Carbon Price Support (CPS) at £18/tCO₂eq (€20.4/tCO₂eq) until April 2022. The CPF, a carbon tax paid by power plants and CHP plants via the Climate Change Levy, was introduced in 2013 in response to the low price of carbon certificates, as part of the United Kingdom's effort to reduce its CO₂ emissions. It applies to gas, LPG and coal input in power and CHP plants across the country, except in Northern Ireland.

The tax is supported by most British power producers which have massively invested in biomass and renewables. However, some industrial group claim the tax is contributing to raising electricity prices. Energy bills have doubled in the UK over the past decade, prompting the government to take a close look at the energy markets.