UK businesses face extra costs with carbon price floor plan

Britain's plan to introduce a price floor for carbon emissions permits from 2013 could push the UK carbon price to €54 a tonne by 2020 and harm UK businesses, Point Carbon analysts said.

In March 2011, the UK government announced plans to introduce a floor for EU permits of £16 (€18) per tonne from 1 April 2013, rising to £30 (€33.8) per tonne by 2020.

The government hopes the floor will incentivise investment in low-carbon technology. It will be levied from 2013 on UK firms operating under the EU's Emissions Trading Scheme (EU ETS), which caps the emissions of the bloc's heavy industry.

ESO: Background information: UK lawmakers call for EU carbon 'floor price' http://www.europeansources.info/record/uk-lawmakers-call-for-eu-carbon-floor-price/

ESO: Background information: United warns EU on emissions scheme http://www.europeansources.info/record/united-warns-eu-on-emissions-scheme/

HM Treasury: Consultations and Legislation: Carbon price floor http://www.hm-treasury.gov.uk/consult_carbon_price_support.htm

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