Carbon price must rise in order to hit emissions target, warns CBI


The CBI is set to use the opening of its annual conference in London today to call for urgent action by businesses, consumers and government on climate change as the employers’ body tries to reposition itself on the issue.

Once reluctant for business to take on the burden of combating climate change, the CBI will give warning that the Government is likely to miss its target of cutting carbon emissions by 20 per cent by 2020, but could meet a later 2050 target.

The CBI argues that the 2050 target, of cutting emissions by 60 per cent, is achievable only if climate change becomes a shared national priority.

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The taskforce’s report, which aims to build on the work of Sir Nicholas Stern, also said that it would be vital to achieve a high and stable price for carbon in order to stimulate business investment in new technology and energy efficiency.

The report says that prices will need to rise from about €24 per tonne at present on the European emissions trading scheme to between €60 and €90 per tonne.

“The establishment of a reliable long-term price for carbon is vital to pull through new technologies,” Ian Conn, a member of the taskforce and group managing director of BP, said.

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Mr Lambert also said that the shift to a low carbon economy need not come at the expense of either continued economic growth or quality of life. “We don’t have to return to the dark ages or live joyless lives to cut our carbon footprints. We just have to learn, together, to do things differently, with carbon becoming a new currency in our economy.”