News from Labour Matters

Energy companies set to pay for emissions trading windfall

The Times newspaper reports today that a windfall tax on Energy Companies is being rejected in favour of changes to the EU Emissions Trading Scheme, where many have reaped windfall profits from the introduction of the scheme.

“Companies would have to pay more for so-called emissions permits, created as part of the European Union’s carbon trading scheme, under the plan being studied by Treasury officials, The Times has learnt. Initially, the permits were free but ministers announced proposals recently to auction 7 per cent of them — a measure that could raise £2 billion over four years. The latest plan would increase that figure to 10 per cent bringing in a further £500 million.

The money would help to fund a package of help for food, fuel and housing costs for poorer households expected to form the centrepiece of Mr Brown’s efforts to restore his political fortunes this autumn.” Read the full article.