| The European Union's Emissions Trading
System (ETS) is failing to deliver vital green investment after
a collapse in carbon prices, MPs have warned in a report.
The Environmental
Audit Committee has called on the UK government to
introduce measures such as a new carbon tax to push the price
of carbon from its level of €15 a tonne to what the MPs see
as a more credible price of €100.
Tim Yeo, chairman of the committee, said - "Emissions trading
should be helping us to combat climate change, but, at the
moment, the price of carbon simply isn't high enough to make
it work. The recession has left many big firms with more carbon
allowances than they need and carbon prices have collapsed.
"If the government wants to kick-start serious green investment,
it must step in to stop the price of carbon flatlining," the
MP added.
The European cap-and-trade scheme has been seen by supporters
as a model that should be replicated worldwide. Barack Obama
has proposed a project for the US, but it is facing heavy
opposition - while, in Australia, the issue has also brought
bitter divisions.
Friends of the Earth said the environmental audit committee
report was "another nail in the coffin" of the ETS and argued
the government should drop its reliance on the scheme in favour
of energy efficiency measures and stronger regulation.
To download the report - Click
Here
|
