The Economic Secretary to the Treasury (Justine Greening)

“Carbon price floor: support and certainty for low-carbon investment” is an innovative approach to achieving the UK’s energy and climate policy objectives. Giving greater support and certainty to the price of carbon in the power sector will encourage further investment in low-carbon electricity generation. This can be achieved through reform of the climate change levy (CCL) and fuel duty to enable fossil fuels used by power generators to be taxed on the basis of their carbon content.

The proposal is part of a wider package of reforms to the electricity market, covering a number of commitments set out in the coalition agreement. These wider reforms are set out in a consultation on electricity market reform, also published today by the Secretary of State for Energy and Climate Change.

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