Floor price may send UK carbon price through the roof

Alex Davis
04 Jun 2010

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Plans proposed by the UK's new coalition government to introduce a carbon price floor could cause the cost of carbon in the UK to increase hugely compared with the rest of Europe, experts warn.

The move is geared towards encouraging investment in the low-carbon energy sector. However, experts predict that the added expense could force industry to relocate elsewhere, while it fails to address underlying fundamental problems hindering energy infrastructure investment.

The price floor will be

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