UK Manufacturers Join Call For Scrapping Unilateral Carbon Tax

  • Date: 01/04/16
  • edie news

Clearer policy amendments, including the scrapping of the carbon price floor, would prove instrumental in securing the long-term stability of Britain’s energy-intensive companies, the manufacturer’s organisation EEF has claimed.

The UK’s carbon price floor rose from £9.54 to £18.08 in 2015 – a far cry from the European value of £4 per tonne of carbon

EEF’s head of climate, energy and environment policy Claire Jakobsson has called on the Government to develop a “level playing field” for manufacturers, claiming that the Conservatives are  ”moving the goalposts”’ too often when it comes to energy policy.

Speaking to edie ahead of her appearance in a green policy-focussed session at edie live next month (scroll down for details), Jakobsson said: “We engaged with the Treasury in the build-up to the 2016 Budget and we got what we hoped for when they scrapped the Carbon Reporting Commitment, which wasn’t offering anything to businesses,” Jakobsson said. “In regards to the Budget, the majority was ticked off of the list.

“However, to go one step further, we would like to have seen a complete scrapping of the carbon price floor, which is a business-unfriendly concept in terms of international competitiveness.”

Introduced in 2013, the carbon price floor was designed to set a minimum price, related to emissions from fossil fuels, which would rise annually and encourage manufacturers to switch to greener fuels. The floor rose from £9.54 to £18.08 last year and, although the Government has agreed to freeze the price up until at least 2020, it is still a far cry from the European valuation of £4 per tonne of carbon.

“Sparking a change in this is a slow process and if the pricing was removed it would relinquish a whole layer of exposure and pressure on the industry,” Jakobsson said. “But the treasury gets around £1bn from the initiative and this would have to be made up elsewhere if it were scrapped.”

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