To ask the Secretary of State for Energy and Climate Change, if she will make it her policy to support French proposals for an EU-wide carbon floor price.
The Government supports the EU Emissions Trading System (EU ETS) as a market-based approach to cap emissions and achieve least-cost decarbonisation. Negotiations to reform and strengthen the EU ETS for the next phase of the system starting in 2021 are still in the early stages. Proposals to set thresholds for the EU carbon price are one of many options open for discussion. The Government believes that the implementation of the Market Stability Reserve, as agreed in 2015, is essential to strengthening the EU ETS carbon price in the long-term and to providing a strong, stable low-carbon investment signal.