In 2023, the UK's climate change-related total tax revenue was approximately $60.02 billion (US Dollars PPP = 2010). The forecast from 2024 to 2028 shows a steady increase with a year-on-year growth of around 0.8% to 1% per annum. Specifically, the five-year compound annual growth rate (CAGR) is forecasted to be approximately 0.97%. This gradual upward trend reflects an increasing focus on climate change initiatives enforced through taxation.
Future trends to watch for:
- Potential policy changes enhancing tax incentives for green technologies.
- Shifts in industrial strategies aligning with carbon-neutral goals.
- Market response to international climate agreements affecting tax structures.
