The UK Carbon Price Support is making remarkable progress in decarbonising the UK’s electricity. Sandbag is urging the government to continue with its policy in the Autumn Statement (see this letter to Rt Hon Philip Hammond MP).
By charging fossil fuel plants £18 per tonne of CO2 to cover some of the external costs of the carbon dioxide they emit, the Carbon Price Support is driving coal off the UK energy system.
In this briefing, new estimates by Sandbag show coal emissions will fall 66% this year and by over 80% since 2012, reducing total UK CO2 emissions by 18% in just four years. The Carbon Price Support is a key element of delivering the Government’s commitment to a 2025 coal phase-out. Removing the Carbon Price Support will not only halt this move towards decarbonisation of electricity, but it would unwind it, as existing coal power plants would run 24/7 again, and invest to extend their lives.
The rest of the world is realising the “quick win” to reduce CO2 emissions is tackling coal power, and the UK is showing how quickly, and cheaply, this can be done.