U.K. Carbon Dioxide-Tax Plan May Fail to Attract Investors, Adviser Says

Article by Catherine Airlie

Climate Change Capital, a London- based investment manager and adviser, said the U.K.'s planned carbon-dioxide tax may fail to attract investors.

Britain, seeking private financing for nuclear stations and other forms of low-carbon generation, last year proposed an additional CO2 charge when European Union permit prices fall below a set level. The plan was to help investors see the revenue benefits of funding cleaner sources of power generation and assist the country in reducing emissions.

The government must strengthen the policy by guaranteeing a minimum price of carbon through a contract, Climate Change Capital said in a report. These guarantees could then be sold to investors and be exercised if the treasury breaks its promise on the carbon price support, according to the report.

To read the full Bloomberg article, please click here.

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U.K. Carbon Dioxide-Tax Plan May Fail to Attract Investors, Adviser Says