According to experts, a far higher price, at least EUR60 per tonne is required to make low-carbon technologies, like nuclear power generation or carbon capture and storage, economic.
The UK government will publish a wide-ranging white paper in July 2009 explaining the plans to meet the UK’s new carbon budgets. It is estimated to discuss measures to prevent the carbon price fluctuating wildly.
Vincent de Rivaz, EDF’s chief executive officer, said: If we are serious about decarbonising electricity generation, we need to be serious about the price of CO2. It’s very important to strengthen the emissions trading scheme … and to sustain a credible, robust carbon price.
According to De Rivaz, EDF’s plan to construct the UK’s reactors assumed there would be a steady energy policy that delivers stable carbon price for low-carbon generation.
De Rivaz said, if UK government did not guarantee a minimum carbon price, or assured one at too low a rate, this could result in lesser reactors being built than planned. De Rivaz adding: The business case has to be competitive. I am a businessman. It’s a no-brainer.
