Carbon Floor Price
GeneralThe Government announced today a consultation on the design of a ‘floor price’ for the carbon market. This short briefing explains what a carbon floor price is and why the Government believes it is needed. It also highlights the issues that need to be born in mind when designing and evaluating a policy intervention of this kind. IT will be important to consider not just the detail of the policy itself but also how it fits into a broader strategy the Government must deploy to create the right conditions to decarbonise the British economy and grow the sustainable energy sector.