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23 March 2011, Financial Times

Carbon floor price boost for ‘green’ power

Article by Sylvia Pfeifer

The UK will become the first country in the world to introduce a carbon price floor for the power sector to encourage investment in all forms of renewable energy, including controversially, new nuclear power...

...Mr Osborne also confirmed plans to inject another £2bn of funding into the Green Investment Bank, backed by asset sales from the government, in addition to the £1bn already announced...

...James Cameron, vice-chairman of Climate Change Capital. warned that "it is also important that as the bank develops, its capital base is regularly reinforced with pollution permit auction proceeds and newly announced UK carbon tax revenues".

The measures form part of the coalition's ambition to become "the greenest government ever". Both the carbon floor price and the extra funding for the Green Investment Bank had been widely expected. The carbon floor price for example was proposed as part of the electricity market review at the end of last year.

Read the full article on the FT website.

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