New report investigates the impact of UK carbon pricing on UK aviation

A new report presenting analysis by Frontier Economics and Air Transport Analytics is being published today to help inform the Developing the UK ETS consultation by the UK ETS Authority on developments to the UK Emissions Trading Scheme.

The report, commissioned by the Department for Transport and Department for Business, Energy and Industrial Strategy, evaluates the impact of alternative approaches to carbon pricing on carbon leakage and the competitiveness of airlines in the UK. 

The report investigates how best to meet government objectives for carbon pricing, including:  reducing emissions, mitigating carbon leakage risk and encouraging broader climate action in the UK and more widely for aviation.  It uses a combination of qualitative and quantitative analysis to consider the interaction between policies such as carbon pricing and various forms of free allocation of allowances.

Click here to read the full report.

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