Uk Carbon Price Floor 2017

The cpf affects the price of carbon in the uk electricity generation market by taxing the.

Uk carbon price floor 2017. 2 from 2016 to 2020 to limit the competitive disadvantage faced by business and reduce energy bills for consumers. This was extended to 2021 in budget 2016. Dated april 2017 replaces the. It stands at 18 25 per ton of carbon dioxide emitted in producing electricity.

The price of carbon 4 1 1 setting a carbon price 4 1 2 carbon pricing in the uk 5 eu emissions trading scheme eu ets 5 2. However the government more recently decided to cap the carbon price floor at 18 08 20 40 till 2021. 7 2 1 setting cps rates 9 2 2 freezing the carbon price 9 2 3 cpf beyond 2021 11 2 4 revenue from the cpf 11 3. Simon evans drsimevans november 22 2017.

The uk s power sector emissions were around 160 million tonnes in 2012 but had fallen 37 to 101 5 million tonnes by 2015. This notice contains information about the carbon price floor. The carbon price floor was introduced in 2013 at a rate of 16 18 05 per tonne of carbon dioxide equivalent tco 2 e and was set to increase to 30 33 85 by 2020. The climate change levy ccl and carbon price floor cpf bulletin is updated every 6 months it contains statistics and analysis on ccl and cpf receipts and declarations in the uk.

Carbon price support component of the floor price would be capped at a maximum of 18 per tonne co. Views on the cpf 13 emissions reductions 13. The cpf was introduced on 1 april 2013 to underpin the price of carbon at a level that drives low carbon investment which the eu ets has not achieved. In 2017 the treasury recouped 1billion in cpf tax receipts.

The carbon tax or the carbon floor price as policymakers refer to it was introduced in 2013. France s floor price is unlikely to have nearly as big an impact on the market as the uk s because french utilities emit far less co2 with around 90 of the country s electricity generated from nuclear or renewables. The carbon price floor cpf is a uk government policy implemented to support the eu emissions trading system eu ets. What is the carbon price floor cpf.