• Consultation Response: UK Emissions Trading Scheme: Future Markets Policy

    T&E UK agrees with the authority’s assessment that the auction reserve price (ARP) should be retained. Furthermore, the ARP should be increased annually.

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    ARP being retained and increased annually would provide increased certainty to investors and institutions about future costs of burning fossil fuels. It would also provide more certainty to current Government plans and strategies that are reliant on an increased future carbon price. In calculating the future carbon price, the current published DESNZ carbon values should be used as a starting point.