Cameron pledges floor price for carbon

A Conservative party green paper on energy policy commits the party - should it lead the next UK government - to turning the climate change levy into a rebateable carbon tax, payable by electricity generators on the carbon content of electricity when the price of EU emissions trading scheme allowances drops below the tax's level.

Isabel Boira-Segarra, renewable services director at WSP Environment & Energy (E&E), said the key factor if such a change is made would be the level of the floor price for carbon. She also questioned the paper's emphasis on making energy policy more market based, warning that it "appears to be at odds with dealing with environmental externalities such as climate change, favouring instead delivery of the most profitable options". This is in contrast to the current government's recent pronouncements in favour of strengthening energy market regulation.

Her colleague and fellow WSP E&E director, David Symons, noted that the Conservatives' paper does not mention changes to the "implementation, thresholds or operation" of the incoming carbon reduction commitment energy efficiency scheme (CRC), and that it therefore "provides some certainty to businesses that the CRC will come into force as planned regardless of which government is in place."

• Conservative party news release
• energy policy paper