The documents at issue refer to the numerous specific points such as, among others, auto-generators, CHP plants, and CCS. Those interested in details for sure should get acquainted with the source documentation. Let’s mention here only that fossil fuels used in carbon capture and storage (CCS) plants will pay reduced carbon price support rates based on the extent to which the carbon dioxide produced by burning fuel in a CCS plant is captured, stored and not emitted.


Does all this mean that the UK government has lost its faith in the EU ETS? Notwithstanding all doubts one can have about the point, the White Paper declares “We remain fully committed to the EU ETS, and consider it the primary vehicle through which to deliver our carbon emission reduction targets.”


As is also stated in the White Paper, carbon price floor is designed “to complement the EU ETS by strengthening the carbon price signal in the UK electricity generation sector, enabling higher levels of investment in low-carbon infrastructure and therefore a faster rate of decarbonisation.”

The next months (but rather years) will show whether the effects of this policy and the consequent carbon price signal will be relevant only for UK businesses or for all EU ETS participants.


Considering, however, the White Paper at issue also announced the implementation in the UK of the emission performance standard (initially be set at a level equivalent to 450g CO2/kWh (at baseload) for all new fossil fuel plant, except carbon capture and storage demonstration plant), the opinion that UK switches on the ‘turbo’ mode in its climate regulatory policies is really justified.




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