The introduction of a carbon floor price to charge business energy users for their emissions denotes a "clear step away" from the government's existing policy of subsidising renewable technology.
This is the view of Dr John Constable, director of policy and research at the Renewable Energy Foundation, who noted that renewables are mostly dependent on subsidy taken from consumers' cheap energy bills.
"Investors are therefore concerned that in its efforts to stimulate growth, which is a key element in the deficit reduction policy, the government will seek to reduce or at the least defer cost burdens such as those imposed by the Renewables Obligation, the Feed-in Tariff, or the Renewable Heat Incentive," he explained.
Dr Constable argued that the replacement of subsidies with a carbon tax is "almost certainly preferable" to consumers, and may even encourage "invention and innovation".
His comments come after the government's Budget announced a carbon floor price of £16 per tonne will be introduced this month, which shifts responsibility from the individual to companies to cut carbon emissions.
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