A new report by the Centre for Policy Studies (CPS) calls for a carbon tax to help the government meet its 2050 carbon net zero target. Activities such as burning fossil fuels should be made more expensive as a way to nudge businesses and consumers towards investing in greener alternatives, the report argues.

Accountancy Daily carries an article on the study, titled Pricing Pollution Properly. It contains a number of suggestions as to how the tax could be levied, and estimates that it has the potential to raise around £27.6bn a year.

Eamonn Ives, head of energy and environment at the CPS said: ‘Carbon pricing and similar mechanisms have huge potential to achieve environmental goals, by putting the onus on to polluters to clean up their act.’

He added: ‘By extending the reach of carbon pricing to more of the UK economy, sectors which have lagged behind those that have made an outsized contribution to decarbonisation in recent decades should begin to catch up, as they must if the UK is to meet net zero.’

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