Coalition deal confirms continued push on carbon

A look at carbon and energy aspects of the Con-Lib coalition government agreement

The new government’s coalition agreement, published on 13 May, confirms a number of policies intended to spur the transition to a low-carbon economy.

The coalition pledges to introduce a floor price for carbon under the EU Emissions Trading Scheme, designed to prevent damaging slumps. According to Conservative thinking, this would be achieved by imposing a tax on EU Allowances bought by energy utilities whenever they fall below a yet-to-be-set threshold. The tax would replace the Climate Change Levy on electricity consumption currently paid by business (ENDS Report April 2010).

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