Cash benefits of emissions trading still up in the air

The UK could earn £700 million per year towards the end of the next decade by selling carbon emission permits under an international trading regime, according to a report by energy consultancy Ilex. 1 The figure needs to be treated as distinctly provisional until international rules on trading are resolved. Meanwhile, important uncertainties remain over whether the Government can reconcile its desire to see UK businesses gaining experience in emissions trading with its aim of maximising energy-saving investments by industry in the design of sectoral energy efficiency agreements under the climate change levy.

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