Three major UK manufacturers have reportedly received significant surplus carbon emission allowances for factories that were idled or downsizing

The measure will partially compensate energy-intensive firms by covering part of the higher fuel prices resulting from the German emissions trading system

It has launched the third call for projects under the EU Innovation Fund, covering topics including decarbonisation, innovative electrification in industry and cleantech manufacturing

The projects are deploying low carbon technologies at industrial scale, covering key sectors such as hydrogen, steel, chemicals, cement, solar energy, biofuels and CCS

It is consulting on the risk of carbon leakage due to the indirect emission costs from the UK Emissions Trading System and carbon price support and the sectors most at risk

Carbon pricing instruments generate around $5bn in revenue, representing a 17% increase from last year, however, the full potential of carbon pricing ‘remains largely untapped’

The launch of the scheme saw the price per tonne of carbon exceeding the EU levels

They believe this would create a global level playing field as well as an incentive for both EU and non-EU industries to decarbonise in line with the Paris climate agreement

The drop was mainly driven by the power sector, where emissions fell by almost 15%, primarily due to coal-fired power production being replaced by electricity from renewables and gas

Policymakers say the plan will be even more ambitious than previous versions and will ensure the UK is aligned with its commitment to reach net zero by 2050