The Failing Carbon Market
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!