Revenue from the UK's carbon emissions tax on energy-intensive industries has surpassed £20 billion, according to new figures.
The levy, administered by the Department for Energy Security and Net Zero under Ed Miliband, has become a significant source of general Treasury income, with all proceeds flowing directly into the public purse rather than being earmarked for specific green initiatives.
Business leaders have criticized the current structure, arguing that companies are receiving only a fraction of the collected funds back in the form of support for decarbonization targets.
The disconnect between the tax's environmental intent and its fiscal reality has sparked renewed debate over whether the revenue should be ringfenced to help firms meet net-zero goals.
The controversy highlights the tension between fiscal consolidation and industrial policy in the UK's green transition.
While the tax has proven effective at generating revenue, critics argue that without dedicated reinvestment, it risks penalizing domestic industry without delivering proportional environmental benefits.