On 23 March 2011 the Chancellor of the Exchequer, George
Osborne, delivered his Budget statement to the House of Commons.
The 2011 Budget contains measures designed to hasten the speed and
scale of investment in low carbon energy projects, including the
introduction of a carbon price floor for electricity generation
from 1 April 2013, the establishment of the Green Investment Bank
(GIB) but also a "windfall" tax on North Sea hydrocarbon
producers.
Carbon price support
The 2011 Budget announces that the Government will introduce a
carbon price floor for electricity generation from 1 April 2013, to
drive investment in the low carbon power sector. The carbon price
floor will tax fossil fuels used in electricity generation under
the climate change levy (CCL). The carbon price floor will start at
around £16 per tonne of carbon dioxide and follow a linear
path to £30 per tonne in 2020. The carbon price support rates
for 2013-14 will be equivalent to £4.94 per tonne of
