Isramart : Ministers should consider new carbon tax, says green committee

Isramart news:

The EU's flagship Emissions Trading System is failing to deliver vital green investment after a recession-fuelled collapse in carbon prices, MPs warned in a report out today.

Westminster's environmental audit committee is calling on the Government to consider measures guaranteeing a minimum price for carbon, such as a new carbon tax, to drum up more funds.

Experts want to see carbon prices raised from their current level of 15 euro (£13) a tonne to around 100 euro.

Committee chairman Tim Yeo said: "Emissions trading should be helping us to combat climate change, but at the moment the price of carbon simply isn't high enough to make it work.

'The recession has left many big firms with more carbon allowances than they need and carbon prices have collapsed.

'If the Government wants to kick-start serious green investment, it must step in to stop the price of carbon flat-lining.