UK manufacturing industry has called for a re-think of potentially damaging proposals for a Carbon Price Floor.
Manufacturers’ organisation EEF stressed the importance of a CPF based on a full assessment of the damage to competitiveness, a proper regulatory impact assessment and a more co-ordinated approach to climate change policy.
Responding to the HM Treasury Consultation on the CPF, the organisation said it supports measures to accelerate a move to a low carbon power generation mix and accepts that there will be some costs to bear. However, it believes that the Carbon Price Floor as it is being proposed will have the unintended consequence of increasing costs for manufacturing, especially energy intensive sectors (while meeting the wishes of electricity generators for greater support to accelerate investment in low carvon electricity generation).
EEF chief executive Terry Scuoler said: “Industry accepts that addressing climate change comes with a price tag but we are rapidly reaching a tipping point where companies who are internationally mobile will say enough is enough.”