Using Wind Energy for Hydrogen Production : An Innovative Concept Cornwall Insight considers the potential scenarios for UK carbon prices as we transition to the new UK ETS, noting the role of market tools, policy, and recent pricing trends in determining these costs.
Key findings
• The combination of an Auction Reserve Price (ARP) of £22/t and the Carbon Price Support (UK CPS), set at £18/t, set a minimum overall price for total UK carbon at £40/t.
• There is uncertainty with further market drivers potentially pushing allowance costs higher.
• The UK has initially set its emissions cap 5% lower than the previous cap it had under the EU ETS.