Market participants are unenthusiastic about the recommendations of the UK parliament’s Environmental Audit Committee’s report, which was released on Monday February 8.
Tim Yeo, chair of the committee, said: “Ministers should seriously explore the possibility of a carbon tax and must press the EU to tighten up the overall caps in the Emissions Trading System.”
The report said that: “Moves to tighten the EU Emissions Trading Scheme (ETS) in its third phase (due to start in 2012) may improve the scheme’s effectiveness, but the Committee is worried that the...