Carbon Tax Freeze to Extend U.K. Coal Profits, New Energy Says
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U.K. coal-fed power stations will gain an extra year of profitability after the government froze a carbon dioxide emissions tax designed to help fight global warming, according to Bloomberg New Energy Finance.
Chancellor George Osborne kept the U.K.’s carbon price support stable until 2020 in his March 19 budget, making it cheaper for utilities to burn coal instead of gas until 2018, New Energy Finance said in a report published today. Power generated from U.K. coal stations will drop to 16 percent of output in 2018 from 39 percent in 2014, the report showed.