Carbon pricing without bite? New evidence on industry compensation raises red flags

clock • 4 min read

Carbon pricing is a powerful tool, but only if it delivers the intended signal, writes Misato Sato from LSE's Grantham Research Institute on Climate Change and the Environment

As the UK government embarks on a full review of its Energy-Intensive Industries Compensation Scheme, timed ahead of the planned introduction of the UK's Carbon Border Adjustment Mechanism (CBAM) in 2027,...

To continue reading this article...

Join BusinessGreen

In just a few clicks you can start your free BusinessGreen Lite membership for 12 months, providing you access to:

  • Three complimentary articles per month covering the latest real-time news, analysis, and opinion from Europe’s leading source of information on the Green economy and business
  • Receive important and breaking news stories via our daily news alert
  • Our weekly newsletter with the best of the week’s green business news and analysis

Join now

 

Already a BusinessGreen member?

Login

More on Policy

Boiler Upgrade Scheme: Government set to expand scheme to include air conditioning heat pumps

Boiler Upgrade Scheme: Government set to expand scheme to include air conditioning heat pumps

Government expands heat pump scheme to include heat batteries and 'air-to-air devices' that can cool homes in summer, despite speculation over budget cuts

Stuart Stone
clock 18 November 2025 • 4 min read
COP30: SMEs demand more support from governments to help them reach net zero

COP30: SMEs demand more support from governments to help them reach net zero

Letter signed by organisations representing more than six million small and medium businesses warns dearth of policy support risks them being left behind in net zero transition

Michael Holder
clock 17 November 2025 • 4 min read
'Mixed signals': Government reportedly planning to restrict heat pump grant scheme

'Mixed signals': Government reportedly planning to restrict heat pump grant scheme

Budget could see heat pump funding diverted to efficiency programmes, in a move experts fear would deal major blow to heat decarbonisation efforts

James Murray
clock 14 November 2025 • 4 min read