UK gas prices are currently amongst the lowest in Europe. Wholesale prices are highly competitive, taxes are relatively low, and for business users, at least, network costs account for a relatively low proportion of the bill. There is only one big problem – the carbon emissions from using the gas itself. (more…)
Government gives green light to those eligible to save money and set course for net zero
For any business with eligible processes and plans to reduce energy or carbon emissions, applying for a Climate Change Agreement (CCA) should be a no-brainer.
The government has published its response to the consultation on an extension to the current scheme for CCAs, which relieve eligible energy-intensive users from most of the costs of the Climate Change Levy (CCL). The consultation outlined proposals to extend the scheme by two years and open it up to new entrants, allowing eligible facilities not currently participating to apply to join in 2021. The consultation received 101 responses, which fed into the final decision-making.
The surprising strength of carbon prices and their impact on the power market
Supply and demand – or not
At first glance it seems at best ironic, possibly even perverse, that carbon prices should have been so strong in recent months. After all, the COVID crisis has caused a collapse in industrial activity and power generation across Europe, reducing carbon emissions and, therefore, also the need for emitters to hold carbon allowances under the EU Emissions Trading System.
Ample supply and reduced demand hardly seem the sort of conditions to cause a surge in prices – so what has been going on?
On 15 October, the UK government announced a new Environment Bill bringing several important changes to UK climate policy. The bill comes alongside the government’s response to the Committee on Climate Change’s (CCC) annual progress reports on UK emissions reductions and UK preparedness for climate change. (more…)
The UK government has set a target of net-zero carbon emissions by 2050 which in now enshrined into law. This raises the ambition of the previous target of an 80% reduction and will require big changes in the way we use energy, as well as an accelerated take up of new technologies to support decarbonisation. (more…)
The Department for Business, Energy and Industrial Strategy (BEIS) is planning for the future of carbon pricing in a no-deal Brexit. Under these circumstances, the UK would cease to participate in the EU Emissions Trading System (EU ETS), and BEIS would replace emissions trading in the UK with a fixed rate tax, called the Carbon Emissions Tax. (more…)