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The Failing Carbon Market

March 14, 2016

By Paul Homewood   





I looked yesterday at the Telegraph’s report on the EU’s beleaguered carbon market. The price has effectively tumbled to nothing, just €5 a tonne of CO2. In the UK, an additional £18/tonne  is added through the Carbon Price Support mechanism.


To put these numbers into perspective, the Committee on Climate Change’s Fifth Carbon Budget report stated:


The Government’s carbon values are designed to be consistent with action required under the Climate Change Act and reach £78/tonne in 2030. These values are the appropriate basis for decision-making for a country committed to long-term carbon targets and international efforts to tackle climate change.

If unabated gas-fired generation faces the full cost of its carbon emissions, several low-carbon options could be delivered without further subsidy.



Back to the drawing board, I think Mr Gummer!

  1. It doesn't add up... permalink
    March 14, 2016 11:21 pm

    The problem is we have the worst of both worlds with the carbon floor price enough to shut coal fired power yet leave CCGT at breakeven, with no incentive for any kind of additional capacity. I do wonder whether Gummer will be among those hauled before Parliament to apologize for their roles in causing blackouts.

  2. Broadlands permalink
    March 15, 2016 12:56 am

    Mission impossible? “They” want “us” to go back to a “safe” 350 ppm CO2? That’s back to 1987. The problem is that CO2 has risen 50 ppm and the number of “carbon feet” has risen by two billion. How can seven to ten billion act like five billion…without serous impacts to social and economic conditions…regardless of who pays?

  3. Paul2 permalink
    March 15, 2016 8:30 am

    Bugger all.

  4. tom0mason permalink
    March 15, 2016 8:31 am

    As the old Soviet survivors know, governments propping-up artificial markets is a big looser of public money. So it’s nice to see another failed scheme by the EU government’s ‘great and the good’ of spending taxpayers money on totally stupid idea.
    Learning by others mistakes takes memory and ability well outside the normal dumb actions of the aristocratic masters of the EU.

    • tom0mason permalink
      March 15, 2016 8:32 am

      oops typo:
      loser not looser…

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