Chancellor George Osborne announced in his 2011 Budget the introduction of a carbon floor price, which is due to start in April 2013.

However, according to the CBI the Government should exempt energy-intensive users from this scheme.

The carbon floor price will be around £16 per tonne of CO2 when the scheme start in 2013, although it will not be 100% clear until

In a new report, released today (August 5), ‘Protecting the UK’s essentials: a blueprint for energy-intensive industries’, the CBI argues the carbon floor price is making it increasingly ‘uncompetitive’ for the most energy-intensive users to remain in the UK,

CBI chief policy director, Katja Hall, said: “The Government is in serious danger of throwing out the baby with the bathwater if it continues to pile new costs onto industries that are responsible for hundreds of thousands of jobs and bring in £15bn to the UK economy every year.

“Businesses accept they must share the cost of moving to a low-carbon economy, but we simply cannot afford to price out this vital sector.

“The Government must ensure its autumn energy strategy looks at ways of exempting companies most at risk from the carbon floor price, while encouraging them to be as energy efficient as possible and use new technology to reduce emissions further.”

Luke Walsh

Action inspires action. Stay ahead of the curve with sustainability and energy newsletters from edie