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<p>The Carbon Price Support is a tax on fossil fuels used in power generation in Great
Britain which provides a ‘top-up’ to the EU Emissions Trading System (ETS) to form
the Total Carbon Price.</p><p> </p><p>As announced at Budget 2018, Carbon Price Support
rates will be frozen at £18/tCO<sub>2</sub> in 2020-21. From 2021-22, the government
will seek to lower CPS rates if the Total Carbon Price remains high.</p><p> </p><p>The
government is committed to meeting its climate change commitments including reducing
carbon emissions by at least 80% of 1990 levels by 2050, and meeting interim carbon
budgets, whilst also ensuring the continued competitiveness of UK businesses. The
tax system is an important part of this.</p>
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