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<p>DECC has published a set of carbon values to be used in policy appraisal across
government. These values are publically available here:</p><p><a href="https://www.gov.uk/government/publications/valuation-of-energy-use-and-greenhouse-gas-emissions-for-appraisal"
target="_blank">https://www.gov.uk/government/publications/valuation-of-energy-use-and-greenhouse-gas-emissions-for-appraisal</a>.</p><p>These
carbon values relate to the estimated cost of mitigating emissions consistent with
the UK’s short and long-term greenhouse gas emissions targets.</p><p>For appraising
policies that reduce or increase emissions in sectors covered by the EU Emissions
Trading System, a ‘traded price of carbon’ is used. This is based on estimates of
the future price of emissions allowances and, in the longer term, estimates of future
global carbon market prices. For policies not covered by the EU ETS, a ‘non-traded
price of carbon’ is used, based on estimates of the cost of action required to meet
wider emissions reduction targets.</p>
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