Consultation on Carbon price floor: Royal Academy of Engineering comments to HM Revenue and Customs.
The Government’s efforts to reform the electricity market in the UK and the proposals to introduce a carbon price support mechanism are supported. Increased confidence in a mechanism to support the price of carbon is essential to encourage investment in low-carbon generating technologies. It is clear that the European Union Emissions Trading Scheme (ETS) is not providing a sufficiently robust carbon price signal and additional support is required. The final mechanism must provide long-term confidence for investors; and be compatible with the complete raft of proposals to reform the electricity market. The carbon support mechanism could have unintended consequences in the heat and transport markets.
Submission Details Submitted on 11 February 2011 to HM Revenue and Customs