Energy Bill
10:54 am
Philip Pearson: The banding idea—doubling the renewable obligations certifications for offshore wind and so on—is obviously a key step forward, recognising that one needs to attract investment to the new emerging technologies. The shadow price of carbon is of course not addressed in the Bill, and there are concerns that the shadow price itself is still pitched too low genuinely to drive change. I would not claim to be an expert on how the formula is developed but it looks as if it is based on a predicted successful outcome of total global emissions divided by the cost of interventions to secure such a reduction in CO2; and the answer is £19 a tonne. But it raises the question, “Will policies be successful at £19 a tonne?”. I do not think that they would be.