Energy Systems Catapult’s ‘Rethinking Decarbonisation Incentives’ (RDI) has explored how UK policies can promote clean growth by taking a whole system approach to carbon policy.
The UK has a complex mix of policies (including taxes, subsidies, standards, and regulations) which give rise to uneven and incomplete incentives to reduce greenhouse gas (GHG) emissions across the economy.
This is far removed from the textbook ideal of economy-wide carbon pricing and constrains low carbon innovation. However, it is clear that such an ‘ideal’ faces immense practical challenges. This report takes account of these challenges and explores further options to improve the broader framework of economic incentives for decarbonisation (‘carbon policy’).
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