New think tank to look at carbon markets
The Government has put together a panel of industry experts to help it ensure the UK capitalises on its current position as a global centre for carbon trading.
Nicholas Stern, author of the globally respected report on the economic impact of climate change, will sit on the panel alongside representatives from the UN, OECD and global financial institutions including as Citigroup, Merrill Lynch and JP Morgan.
According to Government, the economic significance of climate change means it is critical to establish a credible international framework that can deal with the issue efficiently, promoting environmental benefits alongside economic growth and development.
Angela Eagle said: "We all know the scale of the challenge of climate change, and its importance. This challenge is international, and the responses must be too.
"So carbon emissions need a global price, not just a price in the UK, or in Europe.
"Creating a global carbon market will, of course, be a real challenge - and we have to recognise the scale of that ambition. If we're to do it, then there's a huge role for the private sector to play.
"So I'm pleased to be able to announce that to help us to use the knowledge and the skills of the private sector, we are setting up a carbon markets experts group that will act as a sounding board for the Treasury, and that will discuss ways of enhancing and developing the global carbon market."
Economic Secretary and City Minister Kitty Ussher, who last month called for London to aspire to be the global centre for carbon trading, welcomed the announcement.
"I want our economy to not only grow strongly, but also to be green and carbon trading is the key to achieving that," she said.
"It can help us address the challenge of climate change and also further strengthen London's position as a global financial centre.
"Already, the global carbon trading market is worth $30 billion a year - and we expect it to increase significantly in future. This is a new market, and a new opportunity for the UK, and for London in particular."
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