The cost of UK ETS carbon permits (UKAs) was around *** GBP in February 2023, but prices have fallen considerably since then. Prices on January 16, 2025 were just ***** GBP, down ** percent from the same date the previous year. Formerly part of the EU ETS, the UK launched its own cap-and-trade system in 2021 following Brexit. Why has the UK’s carbon price fallen? Several factors have contributed to falling UK carbon prices, including mild winter weather and reduced power demand, as well as a surplus of carbon allowances on the market. While prices have recovered marginally from the record lows, they remain markedly below carbon prices on the EU ETS. The low cost of UK carbon permits has raised concerns that it could deter investment in renewable energy. Future of UK ETS The UK ETS covers emissions from domestic aviation and the industry and power sectors, amounting to some ** percent of the country’s annual GHG emissions. There are plans to expand the system over the coming years to cover CO₂ venting by the upstream oil and gas sector, domestic maritime emissions, and energy from waste and waste incineration. The UK is also looking to introduce a carbon border adjustment mechanism, which would place a carbon price on certain emissions-intensive industrial goods imported to the UK.

In July 2025, 95 percent of households in Great Britain that reported a cost of living increase in the previous month advised that that their food bills had increased, with 57 percent reporting increased gas or electricity bills.

The Freight Road Transport industry operates the most extensive transport network of all freight modes, providing much-needed flexibility and the convenience of door-to-door haulage. The industry has historically offered faster and more reliable delivery times and less damage to goods than other freight methods, making it popular. According to Eurostat, over the past decade, road freight transport has outpaced rail freight transport in the EU, Europe’s second most popular mode of transportation. Yet, low barriers to entry have reduced the market share concentration and created a more fragmented industry, with enterprise numbers climbing over the past decade. Digitisation has proven to be a significant game changer, boosting efficiency and enhancing customer satisfaction. Over the five years through 2025, industry revenue is expected to dip at a compound annual rate of 1.9% to €554.8 billion. In recent years, industry revenue growth has remained weak, primarily because of truck driver shortages, soaring fuel prices and severe supply chain disruptions. Brexit has also weighed on the flow of road freight between the EU and the UK, typified by customs delays and more paperwork. Rampant inflationary pressures have eroded consumer spending as well as output from key industry markets like manufacturing and construction, limiting demand for road hauliers. Although economic uncertainty continues to affect industry operations, easing inflation supports recovery by boosting industrial output and spending. In 2025, industry revenue is forecast to dip by 0.2%, indicating a slower contraction rate as conditions gradually improve. Over the five years through 2030, industry revenue is expected to climb at a compound annual rate of 2.1% to reach €615 billion. Expanding freight volumes as economic conditions improve will drive growth as long as companies can alleviate driver shortages. However, continued efforts made by European governments to promote less fuel-intensive transport methods, like rail and sea transport, will lessen the industry’s overall share of freight movements in the coming years. Road freight companies that adapt and integrate green vehicles into their fleets could drive off competition from the rail freight transportation industry.

The Freight Road Transport industry operates the most extensive transport network of all freight modes, providing much-needed flexibility and the convenience of door-to-door haulage. The industry has historically offered faster and more reliable delivery times and less damage to goods than other freight methods, making it popular. According to Eurostat, over the past decade, road freight transport has outpaced rail freight transport in the EU, Europe’s second most popular mode of transportation. Yet, low barriers to entry have reduced the market share concentration and created a more fragmented industry, with enterprise numbers climbing over the past decade. Digitisation has proven to be a significant game changer, boosting efficiency and enhancing customer satisfaction. Over the five years through 2025, industry revenue is expected to dip at a compound annual rate of 1.9% to €554.8 billion. In recent years, industry revenue growth has remained weak, primarily because of truck driver shortages, soaring fuel prices and severe supply chain disruptions. Brexit has also weighed on the flow of road freight between the EU and the UK, typified by customs delays and more paperwork. Rampant inflationary pressures have eroded consumer spending as well as output from key industry markets like manufacturing and construction, limiting demand for road hauliers. Although economic uncertainty continues to affect industry operations, easing inflation supports recovery by boosting industrial output and spending. In 2025, industry revenue is forecast to dip by 0.2%, indicating a slower contraction rate as conditions gradually improve. Over the five years through 2030, industry revenue is expected to climb at a compound annual rate of 2.1% to reach €615 billion. Expanding freight volumes as economic conditions improve will drive growth as long as companies can alleviate driver shortages. However, continued efforts made by European governments to promote less fuel-intensive transport methods, like rail and sea transport, will lessen the industry’s overall share of freight movements in the coming years. Road freight companies that adapt and integrate green vehicles into their fleets could drive off competition from the rail freight transportation industry.

The Freight Road Transport industry operates the most extensive transport network of all freight modes, providing much-needed flexibility and the convenience of door-to-door haulage. The industry has historically offered faster and more reliable delivery times and less damage to goods than other freight methods, making it popular. According to Eurostat, over the past decade, road freight transport has outpaced rail freight transport in the EU, Europe’s second most popular mode of transportation. Yet, low barriers to entry have reduced the market share concentration and created a more fragmented industry, with enterprise numbers climbing over the past decade. Digitisation has proven to be a significant game changer, boosting efficiency and enhancing customer satisfaction. Over the five years through 2025, industry revenue is expected to dip at a compound annual rate of 1.9% to €554.8 billion. In recent years, industry revenue growth has remained weak, primarily because of truck driver shortages, soaring fuel prices and severe supply chain disruptions. Brexit has also weighed on the flow of road freight between the EU and the UK, typified by customs delays and more paperwork. Rampant inflationary pressures have eroded consumer spending as well as output from key industry markets like manufacturing and construction, limiting demand for road hauliers. Although economic uncertainty continues to affect industry operations, easing inflation supports recovery by boosting industrial output and spending. In 2025, industry revenue is forecast to dip by 0.2%, indicating a slower contraction rate as conditions gradually improve. Over the five years through 2030, industry revenue is expected to climb at a compound annual rate of 2.1% to reach €615 billion. Expanding freight volumes as economic conditions improve will drive growth as long as companies can alleviate driver shortages. However, continued efforts made by European governments to promote less fuel-intensive transport methods, like rail and sea transport, will lessen the industry’s overall share of freight movements in the coming years. Road freight companies that adapt and integrate green vehicles into their fleets could drive off competition from the rail freight transportation industry.