In 2024, the UK’s climate change-related energy tax revenue is predicted to maintain a steady presence, equating to 1.34% of GDP. This percentage is forecasted to gradually decline to 1.25% by 2028. Year-on-year variations demonstrate a slight decrease, influenced by policy adjustments and energy efficiency improvements. Over five years, the compound annual growth rate indicates a modest reduction trend that aligns with continued economic and environmental policy shifts.

Future trends to watch:

The impact of new governmental policies aimed at reducing carbon emissions.
Technological advancements in renewable energy and their influence on tax revenue.
Fluctuations in global energy markets affecting national tax strategy.