Leading UK power companies have warned that the energy market is facing “unstability” unless the government provides urgent clarity on UK’s post-Brexit carbon trading plans. Implemented at the end of the 1 January Brexit transition period to replace the European Union, the plan will reduce greenhouse gas emissions by capping the levels that heavy pollutants can produce and forcing the purchase of carbon credits. Designed. Covers annual output. However, the government is still negotiating with the industry on key aspects of the plan that have not yet started trading. This has led UK power producers to sell power without knowing the associated emission costs. Typically, electricity producers sell electricity up to two years ago, and Brexit UK companies before pricing forward contracts related to the cost of the EU plan.
FT 24th Feb 2021 read more »
Taxing carbon dioxide emissions would be popular with voters, polling suggests, as the government moots ways to put a price on carbon that could help tackle the climate crisis and fund a green recovery from the coronavirus pandemic. Carbon taxes could be levied on energy suppliers, transport including flying, food, imports and other high-carbon goods and services. At present, the UK levies implicit taxes on carbon, for instance through duties on petrol and diesel, and some heavy industries pay an effective price on carbon. But there are no taxes for consumers that are explicitly geared to the carbon emissions created by the goods and services that they buy.
Guardian 24th Feb 2021 read more »