A group of energy firms, including SSE and Drax, has written to chancellor Philip Hammond to argue that the government should maintain the Carbon Price Floor (CPF).
In a joint letter, seen by the Financial Times, the group said that the CPF should be kept in place until at least 2025, adding that it was “central” to the UK’s efforts to decarbonise its power system and had helped to deliver cost-effective emissions reduction.
However, manufacturers’ organisation EEF is reportedly preparing to write to Hammond to suggest that the CPF should be scrapped as low-carbon investment is being driven by a number of other policies.
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