Carbon Taxation and Climate Policy in the United Kingdom: The Coverage Problem in UK Net-Zero Policy Architecture

The United Kingdom has committed to achieving net-zero greenhouse gas emissions by 2050, with carbon pricing positioned as a central policy instrument. However, recent emissions outcomes reveal a pronounced asymmetry: sectors covered by emissions trading have achieved substantial reductions, while non-ETS sectors accounting for around 75% of territorial emissions have shown limited progress. Using verified UK ETS emissions data (2021–2024), this paper shows that the effectiveness of carbon pricing is closely constrained by features of policy architecture, including limited sectoral coverage, fragmented fiscal incentives, and structural inconsistencies in energy taxation.