By Paul Homewood
I have been warning about this for a while:
From The Telegraph:
Tying carbon credits scheme to one used by Brussels will push up cost of electricity, say critics
Sir Keir Starmer is to join a European Union net zero scheme as soon as next month in a move that risks driving up energy bills for millions of households.
The Prime Minister is planning to use a summit in May to align the UK and EU emissions trading schemes as part of his “reset” with Brussels.
Critics claimed that the move would push up the cost of producing electricity from gas-fired power plants, which are the UK’s second-largest source of power – ultimately adding to the costs faced by British industry and increasing household bills.
The Telegraph understands the UK will link its carbon credits scheme to Brussels’ system as part of a plan to “strengthen ties with Europe”.
Nick Timothy, a Conservative MP, warned that linking the schemes would cost British households an extra £112 a year in more expensive goods and electricity from gas-fired plants.
Despite the Government’s call for an increase in renewable energy, gas is still one of the country’s largest sources of power – accounting for 26 per cent of the energy mix last year.
Emissions trading schemes (ETS) are used by the Government and EU to raise money for net zero projects.
They force carbon-emitting companies to buy credits for every tonne of greenhouse gases that they emit, adding to the cost of production and limiting Britain’s carbon footprint.
Since Brexit, when the UK launched its own ETS, British carbon credits have been significantly cheaper than those in Europe, because the Government’s cap on the overall quantity of emissions has been higher.
The system means that carbon-intensive industries have produced goods, including fertiliser and steel, at a lower cost.
Full story here.
https://www.catalyst-commercial.co.uk/works/apr25-energy-market-brief/
Currently EU carbon prices are around 30% higher than ours. Alignment would add about £5/MWh to the cost of generation, which as we know tends to set market prices.
But much more seriously we would lose all control over what happens to the carbon price in future. As we know, the Net Zero zealots in the CCC and elsewhere want to see a much higher carbon price in the near future, in order to force our cheap gas power once and for all.
Under Starmer’s craven surrender, there is nothing we could do if the EU wants to do the same.