Companies that struggle with high energy costs can see higher bills under the suggestion of the Labor leader Sir Kerr Starmer by linking emissions in the UK with the European Union carbon pricing system.
Critics-including conservative deputies, proxy, and energy analysts can lead to the adoption of the most striking European Union rules can lead to inflation of manufacturing expenses and power generation, which may pass higher costs for consumers.
Starmer in Brussels this week, five years after Britain left the European Union, with the aim of what he calls “reset” the relationship of the United Kingdom and the European Union. While he is also looking for new defensive and security agreements, attention has been delivered on his plans for a “full dynamic alignment” with carbon trading rules in the European Union – an approach that can indicate doubts that work intends to reversed parts of Britain’s exit leveling European Union.
Critics say: “It does not make sense to lock the policy of the European Union.”
The former negotiator, Lord Frost, condemned the negotiations in Britain’s exit from the European Union, that is, a shift towards the European Union’s scheme, describing it as “more expensive” and urges the ministers to reduce net measures, not to tighten them. Jacob Rees-Mogg, the former Minister of Business, holds a classification to classify trading on emissions “a way to make energy more expensive”, and must be canceled. “Andrew Griffiths, a conservative business spokesman, argued similarly that joining the European Union system” will add more Costs to companies and consumers. “
The independent carbon trading market in Britain, which was presented after leaving the European Union, witnessed the cost of carbon allowance at about 35 pounds per ton, compared to 70 pounds for the European Union. However, this gap started in distress, as prices that exceed 45 pounds increased in the United Kingdom after news of Starmer proposals, which raised fears of pressure on the intensive energy industries.
Under carbon trading rules, companies must purchase permits if they are emitting a specific threshold. If the United Kingdom is officially prepared with the European Union system, analysts suggest that the joint cost of the industry can coincide with billions of pounds every year. Steve Lovtos, an expert of facilities, estimates that the total annual effect may reach 3.7 billion pounds, with the possibility of high industrial electricity prices to families’ bills.
“Any alignment” will make carbon emissions more expensive “, leading to a general increase in the cost of producing goods from fossil fuels – a step that it considers” very inflationary. “
Some major industries, including steel makers and energy generators, support the action plan despite the potentially short -term cost. By reinforcing the carbon system into the European Union, they hope to avoid the mechanism of adjusting the upcoming carbon borders (CBAM)-effectively carbon tariffs on capacitable imports-which can far exceed the high carbon prices account.
A government spokesman indicated that the Trade and Cooperation Agreement in the current UK allows to be considered to link carbon pricing plans. Starmer has repeatedly said that his priority is “making the exit of Britain from the European Union work better” instead of joining the European Union, but its critics insist that the deepest compatibility with Brussels risks relieving British organizational independence and accumulating new costs on troubled companies.
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