Low UK carbon prices ‘disincentivise’ investment in decarbonisation technology

Recent changes to the UK’s carbon trading system send the wrong signal to industry and weaken the country’s chances of achieving net zero, according to energy industry observers.

Last month, the authority running the emissions trading scheme (ETS) – made up of the UK and devolved governments – announced a new limit on emissions for power generators, carbon intensive industry and aviation, as well as an expansion of the scheme to the maritime and waste sectors.