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<p>The Government is committed to carbon pricing as a decarbonisation tool following
the transition period. In line with the Withdrawal Agreement, the UK will remain in
the EU Emissions Trading System until 31 December 2020.</p><p> </p><p>Alongside the
EU ETS, the UK also applies the Carbon Price Support rate. Together, these have helped
to reduce the importance of coal in the UK’s energy generation mix: electricity generation
from coal usage has fallen from 40% in 2012 to 5% in 2018. Further detail on carbon
pricing will be set out at the Budget.</p><p> </p><p>Additionally, in November 2019,
HM Treasury published Terms of Reference for its review into how the transition to
a net zero economy will be funded, and where the costs will fall. The review will
ensure contributions are fair between households, businesses and the taxpayer, and
will allow us to maximise economic growth opportunities from the transition. The review
will publish its findings in Autumn 2020.</p>
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