David Anderson – 2016 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by David Anderson on 2016-03-04.

To ask the Secretary of State for Energy and Climate Change, if she will make an assessment of the potential effect of absorbing the EU emissions trading system tax on fossil fuels into the UK’s carbon price support tax for fossil fuels.

Amber Rudd

At the February European Council, the Government negotiated a new settlement, giving the United Kingdom a special status in a reformed European Union. The Government’s position, as set out by the Prime Minister to the House on 22 February, is that the UK will be stronger, safer and better off remaining in a reformed EU.

The UK supports the EU Emissions Trading System (EU ETS) as the best means of achieving the EU’s emissions reduction targets to 2030 and beyond at least cost for business and consumers, through a market-based approach. Emissions trading works better at the European level, creating a larger and more liquid market and a level playing field between Member States. The UK has been a consistent champion of the EU ETS and first piloted a national cap-and-trade scheme in 2002 before its launch. The UK has been at the forefront in securing recent measures to reform and strengthen the EU ETS, including securing EU agreement in September 2014 to a Market Stability Reserve to address the surplus of allowances in the system.