Uk Carbon Floor
The carbon price floor is intended to provide greater certainty on future carbon prices protecting investors in uk low carbon initiatives from the volatility of the eu carbon price.
Uk carbon floor. Uk unveils post brexit carbon market plans featuring price floor tighter emissions cap. However the government more recently decided to cap the carbon price floor at 18 08 20 40 till 2021. The cpf was introduced on 1 april 2013 to underpin the price of carbon at a level that drives low carbon investment which the eu ets has not achieved. The future of uk carbon pricing audiences.
The uk s carbon price floor is an unpopular policy. Green campaigners say it s a treasury money spinner with little effect on emissions while industry says it s disadvantaging uk companies in the global market. British power companies pay the difference between the eu price and the uk. The carbon price floor cpf is a uk government policy implemented to support the eu emissions trading system eu ets.
2nd floor victoria 2 1 victoria street london sw1h 0et email. The uk floor price is set at 18 pounds 24 per tonne until 2021. The carbon price floor cpf is a uk government policy implemented to support the eu emissions trading system eu ets. When combined with the.
8 while the energy intensive sectors deemed at risk of carbon leakage are likely to be. The eu carbon price is around 7 euros 8 a tonne. The cpf was introduced on 1 april 2013 to underpin the price of carbon at a level that drives low carbon investment which the eu ets has not achieved. This has the effect of reducing the amount of risk that investors are exposed to and decreasing the cost of capital for low carbon investment.
The carbon floor price will set the uk apart from other eu member states with ihs cera estimating that wholesale electricity prices will increase by 10 15 under the policy in 2015. The carbon price floor was introduced in 2013 at a rate of 16 18 05 per tonne of carbon dioxide equivalent tco 2 e and was set to increase to 30 33 85 by 2020.