The UK government has introduced changes to the carbon trading scheme that make it cheaper for companies to pollute in Britain compared to the EU. The modifications to the scheme offer more allowances to polluting companies than initially expected, resulting in significantly lower carbon prices in the UK compared to the EU. Industry experts have warned that this move will encourage the use of fossil fuels and undermine the country’s green investments. The changes are seen as the latest anti-green action by the Conservative party. The carbon market allows companies and individuals to purchase and sell carbon credits to offset their emissions. The price of emissions trading in the UK is now almost 40% cheaper than in the EU. This discrepancy emerged following concerns around the government’s climate ambitions earlier this year. Energy UK’s deputy director of advocacy, Adam Berman, stressed the importance of a robust carbon price to attract investment in clean energy. BNP Paribas analyst James Huckstepp warned that these changes would make it more difficult for the UK to meet its climate goals and discourage investment in wind farms while increasing reliance on gas. The alterations to the carbon trading scheme have prompted debate within the Conservative party, with some MPs calling for a pause in the drive towards net-zero emissions due to concerns over the costs to individuals. However, others argue that dropping the net-zero target is not a conservative move and risks catastrophic consequences for the planet. The Department for Energy and Net Zero stated that the government is committed to reducing emissions while simultaneously growing the economy and protecting people’s livelihoods. They highlighted recent steps to improve the ambition of the UK Emission Trading Scheme, including a 30% reduction in the cap to align the scheme with the country’s net-zero goals.
ICE is preparing to introduce a futures market for carbon credits under CORSIA, which will focus on reducing airline emissions.
Intercontinental Exchange (ICE) announced plans to launch a physically delivered futures contract for carbon credits eligible for use by the...