CARBON PRICING & INFRASTRUCTURE INVESTMENT

 

PAUL DAVIES

The introduction of explicit carbon pricing is the recommended policy of the Climate Change Committee, the UN Intergovernmental Panel on Climate Change, and is the stated long-term UK Government policy, who have already committed to introducing a UK Emissions Trading Scheme (UK ETS), which will put a decreasing cap on allowable CO2 emissions, leading to a ‘carbon price’ for available allowances.

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This paper reviews the arguments for carbon pricing, but then sets it alongside the need for infrastructure investment and Government policy, which the 10 Point Plan has gone a long way to initiate and address. It describes how a carbon tax can help deliver and fund infrastructure and in turn how infrastructure investment can lower the need for, and size of, carbon tax.

BEIS CONSULTATION ON THE RAB MODEL FOR NUCLEAR

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RESPONSE FROM THE INFRASTRUCTURE FORUM 

The Infrastructure Forum's RAB Working Group has submitted its response to the BEIS Consultation on the RAB Model for Nuclear. 

 

The Working Group, comprised of experts in infrastructure finance with particular knowledge of the RAB model, UK regulatory framework and delivery of greenfield projects, considered questions posed by the consultation on the structuring of the model as well as broader Critical Success Factors necessary for setting up an investable nuclear RAB.

 

Particular focus was given to: the incentive mechanisms which facilitate the delivery of Value for Money for consumers, investors, the project developer and Government; ensuring a robust and credible Economic Regulatory Regime; the investability of the model; importance of a sustainable supply chain; and political support for a UK new nuclear programme.