Carbon floor tax 'could reduce emissions and encourage innovation'

The introduction of the carbon floor tax could encourage innovation in the renewables sector, as well as reduce emissions.

This is according to director of policy and research at the Renewable Energy Foundation Dr John Constable, who claims that this move will shift the onus onto businesses when it comes to reducing carbon output - something that currently rests more on individuals.

And the change, which was announced in last month's Budget and will come into effect in April 2013, will see industries charged £16 per tonne of carbon produced.

Highlighting that this is "a clear step away" from the current process of subsidising renewables from consumers' bills, Dr Constable adds that this may create uncertainty among investors.

However, he states that the move will also create "a much more readily adjusted means of encouraging invention and innovation", as well as being a choice that is sure to be popular among consumers.