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U.K. Budget Suffers Brexit Blow as Carbon Market Unravels

  • Britain might have lost 500 million euros in auction revenue
  • Companies including British Steel seek government help
Brexit Is Said to Delay Handout of $3 Billion of U.K. Carbon (2)
Photographer: Luke Sharrett/Bloomberg

The U.K. budget is already falling victim to Brexit-related trouble in the carbon market.

The government might have lost as much as half a billion euros ($565 million) in revenue in the first quarter after auctions of emission permits were frozen, according to estimates by the International Emissions Trading Association. The decision not to hold government sales under the European Union’s Emissions Trading System was taken last year amid concerns 2019 allowances may become invalid in the event of a no-deal Brexit.