A group of energy companies have called on politicians to make a clear commitment to the carbon price support after 2021.
In an open letter to all UK political party leaders, the group – including SSE, Drax and Intergen – call for a clear manifesto pledge from all the groups to keep supporting the mechanism, which it says “has been a key driver of the huge progress made in power sector decarbonisation”.
“In 2016, emissions from coal plants fell 58 per cent and thanks to Carbon Price Support, unabated, coal-only power stations are well on-course to be closed by 2025,” the letter states.
“In addition to the Climate Change Act and CfD framework this has helped to cement the UK’s position internationally as a leader in tackling climate change in a cost-effective manner.”
The carbon price support is currently set until 2021, as is the carbon price floor.
The letter also calls whoever forms the next government to publish an emissions reduction plan soon after next month’s general election to ensure the UK is able to meet its legal carbon reduction targets for 2028-32, under the Climate Change Act.
“SSE has long argued that putting a price on carbon emissions is the cheapest way of decarbonising our power sector,” said wholesale managing director, Martin Pibworth.
“The UK Carbon Price Support plays a critical role in our energy strategy from ensuring reliability to reducing carbon emissions.
“As a leading investor in low-carbon energy, I’d urge the next government to commit to the carbon price support into the 2020s,” added Pibworth.