European Union’s Proposed New Renewables Target May Force UK to Increase Its Investments

Britain may have to increase its renewable energy sources by five times its current draw by 2020 if the European commission has its way.  The announcement is expected on Wednesday, and will signal whether the UK must raise its renewable rates from 3% to 15%.
The energy package will create binding targets on greenhouse gas emissions and will occur at the same time as the second reading of the government’s energy bill.
The commission will be laying in the place the third phase of the European Union’s emissions trading scheme (ETS), which is the European government’s plan to cut greenhouse gas emissions.  The third phase will push companies running power generators, refineries, and also eventually other industries such as steel, paper, and cement into bidding for permits to emit carbon dioxide.  Currently, free permits have allowed large energy producers to make billions in profits.
The third phase of the ETS will offer an opportunity to strengthen the scheme by curbing permitted emission levels.  Experts widely view this as essential to ensuring a long term price for carbon.  This in turn would create a better market for companies seeking to invest in zero or low carbon options such as on and offshore wind farms, wave power, nuclear power, and tidal power, and carbon capture and storage.