BEIS launched a discussion paper on Friday 5 August to inform a decision on whether the buy-out price for target periods 3 and 4 of the Climate Change Agreements (CCA) scheme should be adjusted.
The department said that it was minded to increase the buy-out price broadly in line with the Retail Price Index to £14/tCO2e for target periods 3 and 4; however, further options being considered include increasing the price to £17/tCO2e, and retaining the present price of £12/tCO2e. BEIS argues that its preferred option would provide a strong incentive to abate while also being mindful of the financial impacts on participants. Responses are invited by 23 September.
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