VPI Immingham calls for clarity around the UK’s carbon price in the 2020s
On Monday the 23rd October 2017, VPI Immingham LLP joined SSE, Drax and Intergen in a joint letter to the Rt Hon Philip Hammond MP, Chancellor of the Exchequer, highlighting the importance of carbon pricing and clarity beyond 2021. The letter was also backed by Sandbag, the not-for-profit climate change policy think tank based in Brussels and London.
The carbon price floor is an additional UK Government policy implemented to support the EU wide Emissions Trading System (EU ETS) which places a price on greenhouse gas emissions. It does this by requiring heavy energy users to acquire permits for every unit of greenhouse gases they emit. These permits are called emission allowances.
In our letter, we welcome the Government’s recent clean growth strategy and commitment to outline future carbon pricing this autumn. At the moment the energy industry only has sight of the minimum UK carbon price to April 2021. The trajectory of the carbon price after this date will provide us with greater certainty about how the UK generation mix will evolve as we look to invest in new flexible generation and highly efficient gas plant.
To read the full letter click the following link: CPF letter 20.10.17 FINAL