U.K.’s Carbon Floor Uses ‘Trick’ to Circumvent EU Law, RWE Says - Bloomberg

The U.K. is using a regulatory “trick” to introduce its carbon tax on fossil-fueled power generation, which would not have been allowed under European Union emissions trading law, said the U.K. unit of RWE AG. (RWE)

The U.K. is using an exemption under the EU Energy Products Directive to proceed with its tax, which it named a carbon floor, John McElroy, director of policy at RWE Npower, said in an interview at the Platts emissions conference in Brussels.

“That’s the trick that they have used,” he said Oct. 6. “It’s not permitted under the EU emissions trading system.”