The review will seek views from both policy experts and “those who will have a role in and be impacted by the transition” to examine where the costs of decarbonisation would fall.
It will “consider the full range of government levers, including tax”, according to a Treasury statement, but will not duplicate its current work on sector-specific decarbonisation, the costs of climate adaptation or the social benefits of climate policy.
The focus will be on how the costs of the transition could be shared between consumers, businesses and taxpayers, and “identifying mechanisms to create an equitable balance of contributions”.
The Treasury will publish a final report in autumn 2020 setting out the principles that will guide net-zero policy.
Meanwhile, the UK government and the devolved administrations have laid a statutory instrument putting into domestic law changes to the EU’s revised ETS Directive, as is required while the country remains a member of the bloc.
They note that all their policy proposals put forward for consultation have been included in two statutory instruments, except for one proposal that would have given the devolved administrations regulatory responsibility for carbon capture and storage.
A full response to the full consultation, which also presented options for a post-Brexit emissions trading system, is yet to be published.