Press Coverage of Policy Exchange’s ‘Next Steps for the Carbon Price Floor’ report

Nov 18, 2016

The Guardian commented that:

‘Policy Exchange has become the latest organisation to call for the retention of the UK’s carbon price floor ahead of next week’s autumn statement, arguing changes to the policy would seriously undermine the government’s efforts to phase out coal power by 2025. The influential thinktank joins the CBI and trade body Energy UK in arguing the levy should be kept in place, despite lobbying from some industry groups calling for it to be axed. Critics of the levy have said it pushes up energy bills and undermines the competitiveness of UK industries – a scenario the government has attempted to address by providing support for industries deemed to be at risk from overseas competition because of environmental policy costs. However, in a new paper Policy Exchange argues that while the carbon price floor has largely failed in its original goal of mobilising investment in clean energy it has inadvertently become the primary policy mechanism for shifting the energy mix from coal to less carbon intensive gas – a phenomenon that has happened so quickly coal provided just three percent of total power generation in the three months to October this year.’

Click here to read the rest of the article on the Guardian’s website

 

The Daily Telegraph commented that:

‘Britain will end up importing electricity from polluting power plants in Europe instead of generating it from cleaner and newer plants at home unless it phases out its carbon tax, Policy Exchange has warned. In a report, the influential think-tank urged the Chancellor to resist calls from manufacturers who want the levy scrapped now and instead keep it until the early 2020s, to ensure that it leads to the closure of the UK’s dirty old coal-fired power plants in favour of new gas plants. But once the coal plants have shut, by the mid-2020s, Policy Exchange argues the tax will serve little purpose and would simply encourage Britain to import more power from dirtier plants in Europe where carbon taxes are lower.’ This could actually increase overall European emissions, while also pushing up UK electricity bills, it warned.’

Click here to read the rest of the article on the Daily Telegraph’s website

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