Energy Markets Outlook: Carbon
(284KB)Once fully established, the emergence of carbon as a tradeable commodity is expected over the long term to influence the type rather than the amount of electricity generating capacity provided by the market and so have no net effect on the long-term supply-demand balance in electricity. Uncertainty about the future of the carbon market may cause delays in investment in new generating capacity which could lead in turn to temporary market tightness in the years ahead. We seek therefore to address that uncertainty by setting out the forward work programme for resolving the future of the carbon market.