Greater taxes on carbon needed, warns parliamentary committee

Tax on carbon emissions needs to rise significantly in order to offset a
collapse in the price of carbon, parliament’s environmental audit committee has

The recession has caused many big companies to be left with more carbon
allowances than they need, resulting in a dramatic drop in the price of carbon
and threatening the success of Europe’s Emissions Trading Scheme.

The committee is calling for the government to introduce new measures such as
a new carbon tax to raise the price of carbon from its current level of €15 a
tonne to around €100, reports the Guardian.

“If the government wants to kick-start serious green investment, it must step
in to stop the price of carbon flatlining,” said committee chairman Tim Yeo.

Related reading